Jio Financial to Secure Shares of Jio Payments Bank Previously Held by SBI

Jio Financial Services Ltd, a spin-off from the Mukesh Ambani-led conglomerate, has announced its acquisition of a significant stake in Jio Payments Bank Limited, a joint venture between Jio Financial and State Bank of India. The acquisition will make Jio Payments Bank a wholly-owned subsidiary of Jio Financial.

According to the announcement, Jio Financial currently holds 82.17 per cent of the paid-up equity share capital of Jio Payments Bank Limited. The acquisition cost of the 7.9 crore shares from State Bank of India amounts to Rs 104.54 crore.

The acquisition is subject to approval from the Reserve Bank of India and is expected to be completed within 45 days post receipt of RBI approval. The acquisition does not indicate any immediate impact on the financial status of either Jio Financial Services Ltd or State Bank of India, nor does it specify any changes in the management or operations of Jio Payments Bank Limited.

Hitesh Sethia, Managing Director and CEO of Jio Financial Services Ltd, who took over the role after being hired by Reliance Industries in March 2023, has been leading the company in its efforts to ramp up its operations since the spin-off.

In addition to this acquisition, Jio Financial is also planning to set up a mutual fund business with U.S.-based BlackRock, marking a strategic move towards expanding its financial services offerings.

The acquisition of Jio Payments Bank Ltd shares by Jio Financial Services Ltd is a significant step towards consolidation of Jio Financial's holdings in Jio Payments Bank Ltd, signifying the company's commitment to strengthening its financial services portfolio. The acquisition will result in Jio Financial owning 100 per cent of Jio Payments Bank Limited upon completion.