Jana Small Finance shares extend fall amid Federal Bank merger buzz; clarification issued

Shares of Jana Small Finance Bank Ltd extended their decline in Wednesday's trade amid reports of a possible merger with Federal Bank Ltd. The stock fell 5.84 per cent to hit a low of Rs 536.70 on BSE.

The stock exchanges, BSE and NSE, had sought clarification from Jana Small Finance Bank following a news report published on August 25, titled "Jana Small Finance Bank, Federal Bank shares fall up to 4% amid merger buzz".

In its response, Jana Small Finance Bank said it "evaluates all opportunities in the ordinary course of business, from time to time."

The lender added that it would continue to make necessary disclosures under Regulation 30 of the Sebi (Listing Obligations and Disclosure Requirements) Regulations, 2015. It also said there was "no material information / event which has not been announced to the stock exchanges" that should have been disclosed under the regulations.

Federal Bank also issued a clarification regarding a report titled "Federal Bank, Jana SFB deal likely in advanced stages", published on August 25.

The private sector lender said it evaluates "various opportunities in the ordinary course, for growth and expansion of its business." Federal Bank further clarified that there was "no material event/ information" requiring disclosure under Regulation 30 of the Sebi Listing Regulations.

Meanwhile, Federal Bank shares remained largely flat in Wednesday's session. The stock was last trading 0.01 per cent higher at Rs 347.35.