Jio Financial Services to Acquire Entire Stake of SBI in their JV Jio Payment Bank

Jio Financial Services Ltd (Jio Fin) is set to acquire the entire stake of State Bank of India (SBI) in their joint venture, Jio Payments Bank. This acquisition involves purchasing 7.9 crore shares from SBI for ₹104.5 crore.

As a result, Jio Fin's shareholding in Jio Payments Bank will increase from 82.17% to 100%, making it a wholly-owned subsidiary.

The deal is subject to approval from the Reserve Bank of India (RBI) and is expected to be completed within 45 days of receiving the necessary clearance. This move aligns with Jio Financial's strategy to expand its operations and strengthen its position in the financial services sector.

Initially founded as a joint venture between Jio Financial Services and SBI, Jio Payments Bank started its operations in April 2018 and has garnered 1.89 million CASA customers as of December 2024. Spun off from Reliance Industries in 2023, Jio Financial Services has been ramping up its operations and expanding its footprint in the financial services sector.

With this acquisition, Jio Financial Services aims to strengthen its position in the financial services market and enhance its digital financial solutions.

Following the announcement, shares of Jio Financial Services saw a surge of nearly 4%, reaching an intraday high of ₹208 on the BSE.

Jio Financial Services reported a consolidated profit of ₹295 crore for the third quarter ending in December 2024, marking a slight 0.3% increase year-on-year.
The company's assets under management (AUM) grew to ₹4,199 crore, up from ₹1,206 crore in the previous September quarter of FY25.

Notably, Jio Financial Services has been planning to set up a mutual fund business in collaboration with U.S.-based BlackRock. The company also introduced a pilot version of the 'JioFinance' app in May 2024, offering UPI, digital banking, and other related services.

This acquisition is a strategic move for Jio Financial Services to consolidate its position in the financial services sector and leverage its digital capabilities to offer a comprehensive range of financial products and services.