Jio Financial Services Ltd (JFS) has taken a decisive step in India’s digital banking sector by acquiring State Bank of India’s entire 17.8% stake in Jio Payments Bank for ₹104.54 crore. This acquisition makes Jio Payments Bank a wholly owned subsidiary of Jio Financial Services, significantly strengthening its digital banking and payments ecosystem.
The transaction involved the purchase of 7.9 crore equity shares from SBI, valuing Jio Payments Bank at approximately ₹586 crore. Following this deal, Jio Financial Services now holds complete ownership, up from its previous 82.17% stake, pending regulatory approval from the Reserve Bank of India.
Launched in 2018 as a joint venture between Reliance Industries-backed Jio Financial Services and SBI, Jio Payments Bank has become a key player in the Indian payments bank sector, serving 1.89 million CASA customers as of December 2024. Payments banks in India focus on digital transactions and financial inclusion, accepting deposits up to ₹2 lakh per customer without extending credit.
The acquisition aligns with Jio Financial Services’ broader ambitions in digital banking, fintech innovation, and online payments, further supported by the company’s recent launch of the JioFinance app and strategic partnerships in wealth management.
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The news of the acquisition led to a notable rise in Jio Financial Services’ share price, reflecting positive investor sentiment and confidence in the company’s digital finance strategy. By securing full control over Jio Payments Bank, Jio Financial Services is positioned to accelerate growth, enhance product innovation, and consolidate its leadership in India’s rapidly evolving digital finance ecosystem.
This move is expected to drive further expansion in the online payments and digital banking landscape, reinforcing the Reliance Group’s commitment to financial inclusion and technological advancement in the Indian fintech sector.
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