Reliance Industries, under the leadership of Chairman Mukesh Ambani, made waves in the financial sector with a recent acquisition that has set the industry abuzz. On March 4, 2025, Jio Financial Services Ltd, a subsidiary of Reliance Industries, announced its purchase of 7.9 crore shares of Jio Payments Bank from State Bank of India for a staggering Rs 104.5 crore. This acquisition cements Jio Payments Bank as a wholly owned subsidiary of Jio Financial Services, consolidating its position in the market.
The news sent shockwaves through the financial world, propelling shares of Jio Financial Services to new heights. The non-banking finance company, a brainchild of billionaire Mukesh Ambani, saw a nearly four percent surge in its shares, reaching an impressive intraday high of Rs 208 on the Bombay Stock Exchange (BSE).
The Strategic Acquisition
Jio Financial Services currently holds an 82.17 percent stake in Jio Payments Bank, which was established as a joint venture between Jio Financial and State Bank of India, the largest state-run lender in India. With this latest acquisition, Jio Payments Bank will make the transition to becoming a 100 percent subsidiary of Jio Financial Services, solidifying its position in the financial landscape.
In a statement released to the stock exchange, Jio Financial Services confirmed the acquisition of 79 million equity shares of Jio Payments Bank from SBI for a total consideration of Rs 104.54 crore. The Board of Directors of JFS approved the transaction, signaling a strategic move to bolster its presence in the banking sector.
The completion of the deal is subject to approval from the Reserve Bank of India (RBI) and is expected to be finalized within 45 days of regulatory clearance. This acquisition marks a significant milestone for Jio Financial Services as it expands its foothold in the financial market.
Implications for the Industry
The divestment of SBI’s stake in Jio Payments Bank to Jio Financial Services has far-reaching implications for the industry. The Central Board of Directors at SBI approved the sale of its entire stake in Jio Payments Bank for Rs 13.22 per equity share, totaling Rs 104.5 crore and valuing Jio Payments Bank at approximately Rs 586 crore.
This strategic move underscores the growing influence of Jio Financial Services in the banking sector and signals a shift in the competitive landscape. With the transaction pending regulatory approval from the RBI, industry experts are closely monitoring the developments and anticipating the impact on the broader financial market.
Jio Payments Bank, which commenced operations in April 2018, has rapidly gained traction, amassing 1.89 million CASA customers as of December 2024. The bank’s innovative approach to banking services has resonated with customers, positioning it as a key player in the payments banking segment.
India is home to five payments banks, including Airtel Payments Bank, Fino Payments Bank, India Post Payments Bank, NSDL Payments Bank, and Jio Payments Bank. These banks play a crucial role in expanding financial inclusion and providing accessible banking services to underserved populations.
As the financial landscape continues to evolve, the acquisition of Jio Payments Bank by Jio Financial Services signals a strategic move to strengthen its position in the market and drive innovation in the banking sector. With regulatory approval pending, all eyes are on the future of Jio Financial Services and the broader implications for the financial industry.
