Shares of Jana Small Finance Bank Ltd. extended their decline in Wednesday's trade following unconfirmed reports of a potential merger with Federal Bank Ltd. The stock experienced a notable fall, hitting a low of Rs 536.70 on the BSE, representing a 5.84 percent decrease.
The Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) had sought clarification from Jana Small Finance Bank regarding news reports published on August 25, which discussed the merger speculation.
In response to the stock exchanges' query, Jana Small Finance Bank stated that it "evaluates all opportunities in the ordinary course of business, from time to time." The lender further clarified that there was "no material information / event which has not been announced to the stock exchanges" that would require disclosure under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Federal Bank also issued a clarification concerning a report titled "Federal Bank, Jana SFB deal likely in advanced stages." The private sector lender affirmed that it evaluates "various opportunities in the ordinary course, for growth and expansion of its business." Similar to Jana SFB, Federal Bank clarified that there was "no material event/ information" necessitating disclosure under Regulation 30 of the SEBI Listing Regulations.
Meanwhile, Federal Bank's shares remained largely stable during Wednesday's trading session, closing with a marginal gain of 0.01 percent at Rs 347.35.