Jio Financial Services Limited is an Indian financial services limited which is originally a part of RELIANCE INDUSTRIES and holds an NBFC license from the RBI.
Jio Financial Services Limited is an Indian financial services limited which is originally a part of RELIANCE INDUSTRIES. It had already become an independent entity and a most important part of Indian Stock Exchanges in August 2023. This company provides various financial services like payment services and insurance.
Jio Finance holds an NBFC license from the RBI. Another payment, Jio Payment Banks is also a payment bank registered in India. Reliance Industries transferred Rs. 15,500 crore of cash and liquid investments to Jio Financial Services as a part of the demerger scheme, this gave Jio Financial Services a liquid asset base of 20,700 crore.
Jio Financial Services: Journey so far?
Jio Financial Services Limited was initially incorporated as Reliance Strategic Investments Private Limited on July 22, 1999, under the Companies Act of 1956. The company later changed its name to Reliance Strategic Investments Limited, had also received a new incorporation on January 14, 2002.
On July 23, 2023, the company name was again changed to Jio Financial Services Limited, and a fresh certificate of incorporation was issued. A demerged entity of energy had been changed to telecom, Jio Financial made its debut on D-Street on August 21, 2023.
RBI approval for Jio financial services
Share of the Jio financial services had been focused on Saturday after the company had informed the exchanges that it has received approval from the Reserve Bank of India for converting into a “Core Investment company’’ from a ‘Non-Banking Financial Company’(NBFC). Shares of Jio Financial Services ended with a change on Thursday at Rs34.83. The stock had risen approx. 50% till now in 2024.
Reliance Industries Limited, a big well-known company that mostly deals in energy had transferred its motto to telecom services and created a new company called Jio Financial Services.
When the Application was Submitted?
- In November last year, Jio Financial Services applied to the RBI to convert from a ‘Non-Banking Financial Company’(NBFC) to a Core Investment company.
- To start their company, Jio Financial Services applied to the RBI after splitting off from the Reliance Industries financial services division.
- On August 21, 2023, Jio Financial officially applied on the Stock Exchanges. And on Thursday’s session, Jio Financial Services’ share price closed at Rs.348.06 on BSE.
- Reliance Industries, the parent firm of Jio Financial Services, will release Its joint quarter financial results on the upcoming Friday i.e., June 19.
Jio Financial Services Revenue
Jio had an improvement in the revenue in the Jio financial services, we saw an increase in their combined net profit for the fourth quarter by 6% at the end of March 2024, reaching Rs311 crore due to its higher income.
They had also reported a profit of Rs294 crore for the quarter ending in December. The company also mentioned that their total net profit had surged significantly rising from Rs31 crore in the last previous year to Rs.1605 in 2024.
The revenue last December was Rs.414 crore and now it has increased to Rs.418 crore in just a few months. In addition to investment and lending, Jio financial services also offered many payment gateways, bank, and other payment aggregate services too
Jio Financial Services unveils Jio Finance App in Beta Version
According to the press conference release from the company, Jio Financial Services launched the Jio finance app, it offers an integration of digital banking services, including UPI transactions, bill payments, and insurance advisory.
The company has introduced its “JIo Finance” app in beta mode, the main aim is to provide a user-friendly interface between human and digital banking and financial management. this app provides seamless integration of digital banking features such as UPI transactions insurance advisory services.
Users can easily check their accounts and savings on a single platform. This app also promises to give effortless money management that is easily accessible to users of all backgrounds. Jio Financial Services gets RBI’s green light to become a core investment company
What is a Core Investment Company?
A core investment company acts as the most important entity, primarily managing the shares and the securities of its group companies. With the changes, Jio Financial Services could organize its various business areas such as lending, asset management, and others –into separate companies under the CIC group.
According to the rules and regulations, a CIC must have assets worth more than Rs. 100 crore and must have an investment of at least 90 of its et assets in things like stocks, bonds, loans, or other investments in companies among its group.
This setup also helps us to efficiently distribute the capital among its subsidiaries, and ensure each business area gets the various types of resources needed in the field of finance to grow up.
What Changes for Jio Financial Services?
With the approval of the change, Jio Financial Services will now have more flexibility in terms of its day-to-day operations. Now it can have a main focus on core investments rather than other finance activities. Jio Financial can now aim for diversification of its investment portfolio with ever-changing market conditions.
