Jana Small Finance Bank Ltd IPO

The bank is subject to inspections by various regulatory authorities, such as the RBI, PFRDA, IRDA and National Pension System Trust. Non-compliance with the observations of such regulators could adversely affect its business, financial condition, results of operations and cash flows.

The bank is subject to stringent regulatory requirements and prudential norms. In addition, some of these regulatory requirements and prudential norms are more onerous for Small Finance Banks compared to other banks. The bank has not been able to comply with certain provisions of the SFB Licensing Guidelines and the RBI Final Approval. As a result, the RBI may take regulatory action against it, which could include imposition of monetary penalties, revocation of the RBI Final Approval or such other penal actions and restrictions deemed fit by the RBI, the imposition of any of which could have a material adverse effect on its business, financial condition, results of operations and cash flows.

Its Bank is subject to restrictions relating to the Equity Shares as per the RBI In-Principle Approval, RBI Final Approval, SFB Licensing Guidelines and SFB Operating Guidelines.

There have been irregularities in certain regulatory filings made by it with the RoC under applicable law and delays in submitting regulatory filings with the RBI. Further, certain of its statutory and regulatory records are untraceable. The bank cannot assure you that no legal proceedings or regulatory actions will be initiated against its Bank in the future in relation to such missing corporate records or irregular filings.

Its non-convertible debentures are listed on the BSE and the bank is subject to rules and regulations with respect to such listed non-convertible debentures. If its fail to comply with such rules and regulations, its may be subject to certain penal actions, which may have an adverse effect on its business, results of operations, financial condition and cash flows.

Its may be unable to maintain or renew its statutory and regulatory permits, licences and approvals required to operate its business, which may adversely affect its business, financial condition, results of operation and cash flows.

The RBI is required to approve candidates proposed to be appointed as chairman, managing director and executive director. Additionally, the RBI has the power and the authority to remove any employee or managerial person under certain circumstances.

Any non-compliance with mandatory AML, KYC and CFT laws and regulations could expose it to liability and harm its business and reputation.

Due to the non-updating of their Aadhaar numbers by certain of its employees with the Pension Fund Regulatory and Development Authority ("PFRDA"), the bank was unable to deposit the provident fund payments for such employees with the PFRDA. All such amounts have been remitted to an escrow account. Its deposit the provident fund payments for such employees with the PFRDA once its receive their updated Aadhaar numbers. Its subject to an interest levy payable on the amounts that are required to be deposited with the PFRDA until the date such amounts are deposited with the PFRDA.

A high Illiquidity Ratio indicates that a bank holds a low amount of liquid assets, which affects its ability to pay its debt obligations and short-term liabilities. If its unable to decrease its Illiquidity Ratio, it could have an adverse effect on its business, financial condition, results of operations and cash flows.