Jio Financial Services (JFS) is set to acquire State Bank of India’s (SBI) entire stake in Jio Payments Bank (JPBL) for ₹104.54 crore, making JPBL a wholly owned subsidiary of JFS.
JFS, which already holds 82.17 percent of JPBL’s paid-up equity share capital, will purchase 7.91 lakh equity shares from SBI at ₹13.22 per share.
Strengthening Control Over Jio Payments Bank
Announcing the transaction, JFS said in a regulatory filing that its board of directors approved the acquisition.
“The board of directors of the company, at its meeting held today, have approved the acquisition of 7.91 lakh equity shares of JPBL from SBI for an aggregate consideration of ₹104.54 crore. Post this acquisition, JPBL will become a wholly owned subsidiary of the company,” the filing stated.
SBI confirmed the deal in its exchange filing, noting that JPBL’s net worth stood at ₹104.26 crore as of November 11, 2024.
The acquisition is subject to approval from the Reserve Bank of India (RBI), and JFS expects to complete the transaction within 45 days of receiving regulatory clearance.
JFS Expands Payments Bank Stake Again
This marks the second stake increase in JPBL by JFS in the past year. In August 2024, JFS raised its stake from 78.95 percent to 82.17 percent by acquiring 6.8 crore equity shares for ₹68 crore from SBI.
JPBL was originally formed in 2016 as a joint venture, with Reliance Industries holding 77 percent and SBI owning 23 percent.
JFS Expanding Its Financial Footprint
JFS has been aggressively strengthening its financial services ecosystem, with JPBL playing a crucial role in digital banking, remittances, and payment solutions.
As of Q3 FY25, JPBL had:
- 1.89 million CASA customers (current and savings accounts)
- 7,300 banking representatives, supporting financial inclusion and digital transactions
JFS views JPBL as a key driver for customer engagement and distribution expansion, leveraging its ecosystem for broader financial services growth.
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Financial Growth and Future Plans
JFS reported a 0.3 percent rise in net profit to ₹294.78 crore in Q3 FY25, while revenue from operations grew 5.7 percent to ₹438.35 crore.
Beyond payments, JFS is also expanding into wealth management and brokerage services. After forming a joint venture with BlackRock for mutual fund operations, JFS and BlackRock recently infused ₹117 crore into Jio BlackRock Asset Management, signaling their commitment to India’s growing investment market.
Shares of JFS closed 2.69 percent higher at ₹206.35 on March 4, recovering from an intraday low of ₹198.60 on March 3.
With JPBL soon to be fully owned by JFS, the company is poised to further integrate financial services across payments, lending, and wealth management, solidifying its position in India’s fintech sector.
