Jio Financial stock rises 4% on plans to acquire Jio Payments Bank shares worth ₹105 crore from SBI

Jio Financial Services Ltd announced on Tuesday, March 4, that it will acquire 7.9 crore shares of Jio Payments Bank from State Bank of India (SBI) for ₹104.5 crore, making the payments bank its wholly owned subsidiary. Shares of the billionaire Mukesh Ambani-owned non-banking finance company (NBFC) surged nearly four per cent, hitting an intraday high of ₹208 on the BSE.

Jio Financial Services holds an 82.17 per cent stake in Jio Payments Bank, a joint venture between Reliance Industries-backed Jio Financial and SBI, the country's largest state-run lender. Following the acquisition, Jio Payments Bank will become a 100 per cent subsidiary of Jio Financial Services. 

Also Read: Jio Financial Services Q3 Results: Net profit flat at ₹295 crore, revenue up 6% YoY; AUM rises to ₹4,199 crore

Jio Financial Services to acquire Jio Payments Bank

The deal, approved by Jio Financial's Board of Directors, is subject to Reserve Bank of India (RBI) approval and is expected to be completed within 45 days post-clearance. The company clarified that the transaction is not a related-party deal, and no promoters or group entities have any financial interest in the acquisition.

Jio Financial Services' consolidated profit remained flat at ₹295 crore, rising by 0.3 per cent year-on-year for the third quarter ended in December 2024. The NBFC earned a net profit of ₹294 crore in the same quarter of the previous fiscal year. Its assets under management (AUM) increased to ₹4,199 crore, compared to ₹1,206 crore in the preceding September quarter of FY25. 

Also Read: Jio Financial Services Q2 Results: Net profit rises 3% to ₹689 crore, revenue up 14% YoY; 5 key highlights

Jio Financial has been ramping up operations since it was spun off from the Mukesh Ambani-led conglomerate in 2023. It has recently planned a mutual fund business with US-based BlackRock. Jio Financial Services provides customers with loans, savings accounts, UPI bill payments, and digital insurance services. It commands a market capitalisation of ₹1,31,097.08 crore.

The digital footprint grew in the December quarter, with an average of 7.4 million monthly active users (MAUs) across all its digital platforms. The NBFC now operates in seven cities with nine offices. On Tuesday, shares of Jio Financial Services opened at ₹200 and rose four per cent to hit an intra-day high of ₹208 before settling 2.69 per cent higher at ₹206.35 apiece on the BSE.

Also Read: Jio Financial Services gets RBI green light to become a core investment company