TVS Group eyes stake in Jana Small Finance Bank through preferential route: Exclusive

CNBC-TV18 had first reported on May 6 in its D-Street Chatter segment that Jana Small Finance Bank was evaluating a potential capital raise. CNBC-TV18 has reached out to both Jana Small Finance Bank and the TVS Group for a comment. While Jana SF did not offer any comment on the story and TVS Group's response is awaited.

By Ritu Singh

Shares of TVS Motor Company Ltd. fell as much as 4% after CNBC-TV18 reported exclusively that the group is eyeing a stake in lender Jana Small Finance Bank.

Sources with knowledge of the matter told CNBC-TV18 that the TVS Group is set to acquire a 9.99% stake in Jana Small Finance Bank through a preferential allotment, marking a significant strategic investment in the small finance banking space.

According to sources familiar with the development, the transaction will be priced in line with SEBI’s preferential allotment norms, with the TVS Group expected to infuse between ₹450 crore – ₹500 crore into the bank.

The proposed 9.99% stake acquisition is seen as significant as it keeps the investment just below the 10% regulatory threshold applicable to corporate ownership in banks, thereby avoiding additional compliance and approval requirements that kick in beyond that level.

Sources added that Jana Small Finance Bank’s board is scheduled to consider the fund-raising proposal at its meeting on Monday, May 18. Following board approval, the proposal will be submitted to the Reserve Bank of India for regulatory clearance.

The fresh capital infusion is expected to support Jana SFB’s expansion and future growth plans. The bank had reported a capital adequacy ratio, or CRAR, of 19.4% for financial year 2026, indicating a comfortable capital position even as it looks to strengthen its balance sheet further.

As per the latest shareholding pattern, promoters hold a 21.85% stake in Jana SFB through Jana Holdings, Jana Capital and Jana Urban Foundation. Other key investors in the bank include TPG Asia, which holds an 8.11% stake, North Haven PE Asia Platinum, backed by Morgan Stanley Private Equity, with 3.18%, and HarbourVest Partners Co-Investment Fund IV with 2.38%.

CNBC-TV18 had first reported on May 6 in its D-Street Chatter segment that Jana Small Finance Bank was evaluating a potential capital raise. CNBC-TV18 has reached out to both Jana Small Finance Bank and the TVS Group for a comment. While Jana SF did not offer any comment on the story and TVS Group's response is awaited.

Shares of Jana Small Finance Bank are off the day's high, trading 0.4% higher at ₹488.05, above its IPO price of ₹414 per share. On the other hand, shares of TVS Motor are down 3.2% at ₹3,415.6.