Federal Bank Shares Fall 4% On Jana Small Finance Bank Acquisition Reports
Federal Bank shares declined nearly 4% on August 25 after reports that the Kerala-based private lender is in advanced discussions to acquire a controlling stake in Jana Small Finance Bank (Jana SFB). According to CNBC-TV18, Jana SFB’s promoter could sell its entire 16.9% stake to Federal Bank. The acquisition, if completed, may require Federal Bank to make an open offer for shares held by the…
Federal Bank's stock experienced a 4% drop on August 25 following reports of advanced negotiations to acquire a controlling interest in Jana Small Finance Bank (Jana SFB). According to CNBC-TV18, the Kerala-based private lender may purchase Jana SFB's entire 16.9% stake. If the acquisition proceeds, Federal Bank might need to issue an open offer for shares belonging to other shareholders.
At 1 pm, Federal Bank shares were trading 2.5% lower at Rs 349, while Jana SFB saw a decline of nearly 2.38% to Rs 568. Notably, Federal Bank reported a 36.58% increase in net profit to ₹1,177 crore for the first quarter ended June 2026, exceeding the Bloomberg consensus estimate of Rs 1,186 crore. Despite this strong performance, the profit figure was slightly below the analyst estimate.
Federal Bank's net interest income surged 26.1% to Rs 2,946 crore, surpassing the analyst projection of Rs 2,851 crore. The bank's asset quality improved, with provisions falling to Rs 317 crore from Rs 400 crore and the gross non-performing asset ratio decreasing to 1.52% from 1.62%. However, the potential acquisition of Jana SFB could significantly expand Federal Bank's footprint in the small finance banking sector, pending further official announcements.
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