Federal Bank said it routinely evaluates opportunities for business growth and expansion but added that there was no material event or information requiring disclosure, following a report that it was in advanced discussions to acquire a controlling stake in Jana Small Finance Bank.
"We wish to mention that the Bank evaluates various opportunities in the ordinary course, for growth and expansion of its business. Further, we clarify that there is no material event/information that requires disclosure under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015," Federal Bank said in an exchange filing.
The clarification followed a CNBC-TV18 report that Federal Bank was looking to acquire a controlling stake in Jana Small Finance Bank and that the two lenders were likely to be at an advanced stage of the proposed deal.
The report also said Jana Small Finance Bank's promoter was considering selling its entire holding as part of the proposed transaction.
Federal Bank and Jana Small Finance Bank shares fell by as much as 4.5% and 3.5%, respectively, following the report. Federal Bank declined to Rs 341.80 at its intraday low, while Jana Small Finance Bank fell to Rs 560.95.
Jana Holdings, the promoter of Jana Small Finance Bank, held a 16.94% stake in the lender, according to the latest shareholding data available on the BSE.
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