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Jana Small Finance Bank Ltd. traces its institutional history to its founding as Janalakshmi Financial Services (JFS) on July 24, 2006, where it rapidly evolved into one of India’s largest microfinance institutions (MFI) focused on serving the urban and semi-urban underserved population. As a microfinance lender, the company endured significant financial strain, including large losses in the wake of the 2016 Indian banknote demonetisation. Following the Reserve Bank of India’s (RBI) push for differentiated banking, JFS received approval to transition, and the entity commenced operations as Jana Small Finance Bank on March 28, 2018. This conversion marked a pivotal shift, enabling the institution to expand its offerings beyond collateral-free microloans to include deposits, secured loans, and other comprehensive banking services.

The bank is currently a public, listed company, with its shares trading on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE), following its Initial Public Offering (IPO). Its significance within the Indian financial system is defined by its role as a specialized lender mandated to promote financial inclusion. By transitioning from an MFI into a Small Finance Bank, Jana SFB became a key instrument in the RBI's strategy to extend formal banking services—such as savings accounts and credit—to small business units, marginal farmers, and micro-entrepreneurs who are typically neglected by larger commercial banks. The bank's evolution represents a crucial pathway for successful microfinance institutions to gain a full banking license and deepen their impact on financial access across the country.