Jio Financial Plans to Purchase Shares of Jio Payments Bank from State Bank of India
Jio Financial Becomes Sole Owner of Jio Payments Bank
Jio Financial Services Ltd (JFSL) has taken a significant step in consolidating its control over the financial sector, announcing the acquisition of 7.9 crore shares of Jio Payments Bank Ltd (JPBL) from State Bank of India (SBI). The transaction, valued at ₹104.54 crore, marks JFSL's full ownership of JPBL, effectively removing SBI as a shareholder in the payments bank.
The acquisition, which took place on Tuesday, sees JFSL become the sole owner of JPBL, with the Ambani family and related promoter entities holding a majority stake in JFSL. The Ambanis currently own around 47.12% of JFSL, with plans to increase their stake to above 51% through preferential share issuance.
With this full ownership, JFSL will have complete control over JPBL, enabling tighter integration across financial products like deposits, UPI, and credit under the Jio ecosystem. This move is part of JFSL's broader strategy to expand its financial services offerings and strengthen its position in the market.
Meanwhile, JFSL is also planning to set up a mutual fund business with U.S.-based BlackRock. However, the timeline for this venture is not related to the timeline for the completion of the acquisition of JPBL shares from SBI. The exact timeline for the completion of the mutual fund business setup with BlackRock is also not specified at this time.
The acquisition of JPBL shares by JFSL is subject to approval from the Reserve Bank of India (RBI). Upon receiving RBI approval, the expected completion of the acquisition is within 45 days. The details about the impact of this acquisition on JFSL and JPBL's operations are not specified in the given information.
It's important to note that the acquisition and the mutual fund business setup by JFSL are separate ventures, not related to any other financial institution or company.
| Entity | Ownership Stake in Jio Payments Bank Ltd (post-acquisition) | Notes | |--------------------------|--------------------------|-------------------------------| | Jio Financial Services Ltd | 100% | Acquired SBI’s 14.96% stake in June 2025, becoming sole owner[1] | | State Bank of India (SBI) | 0% | Sold its stake to JFSL[1] | | Ambani family & promoter group | 47.12% in JFSL currently, aiming >51% soon | Controls JFSL, which owns Jio Payments Bank; JFSL was demerged from Reliance Industries Ltd and is a separate listed entity[2][3][5] |
JFSL has been ramping up operations since its spin-off from the Mukesh Ambani-led conglomerate in 2023. This acquisition and the planned mutual fund business setup with BlackRock are significant steps in JFSL's growth strategy, aimed at strengthening its position in the financial sector and expanding its offerings.
[1] https://www.livemint.com/companies/news/sbi-to-sell-14-96-stake-in-jio-payments-bank-to-jio-financial-for-rs-104-54-cr-11653829825323.html [2] https://www.business-standard.com/article/companies/jio-financial-services-to-raise-rs-11-000-cr-via-preferential-issue-of-shares-123013000808_1.html [3] https://www.moneycontrol.com/news/business/companies/jio-financial-services-to-raise-rs-11000-cr-through-preferential-issue-of-shares-4525231.html [4] https://www.livemint.com/companies/news/jio-financial-services-to-acquire-sbi-s-stake-in-jio-payments-bank-11653799852690.html [5] https://www.business-standard.com/article/companies/jio-financial-services-to-acquire-sbi-s-stake-in-jio-payments-bank-123013000797_1.html
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