Jio Financial Services is uniquely positioned to capitalize on growth opportunities in the financial services sector and play a critical role in transforming the landscape of digital finance in India, said Mukesh Ambani, Chairman and Managing Director of Reliance Industries, in his message to shareholders in the company’s 2022-2023 annual report.
The equity shares of Reliance Strategic Investments Limited (RSIL), which will be called Jio Financial Services Limited, are scheduled to be launched soon, according to the annual report 2022-23.
The equity shares of Reliance Strategic Investments Limited (RSIL), which will be called Jio Financial Services Limited, are scheduled to be launched soon, according to the annual report 2022-23.
“Jio Financial Services Limited and its subsidiaries will leverage Reliance’s technological capabilities to digitally deliver financial services, democratising access to financial services offerings for Indian citizens,” Ambani stated in his shareholder message. Ambani continued, “Jio Financial Services aims to provide simple, affordable, and innovative digital first solutions.”
In October 2022, Reliance stated that it would demerge and float its financial services division, Reliance Strategic Investments, which would be called Jio Financial Services (JFS).
Ambani highlighted in his message that Jio Financial Services and its subsidiaries will harness Reliance’s technological capabilities to digitally deliver financial services, democratizing access to financial services products for Indian residents.
Furthermore, Ambani stated that Jio Financial Services seeks to provide easy, inexpensive, and creative digital first solutions and is uniquely positioned to capitalize on growth possibilities in the financial services sector and play a critical role in reshaping the landscape of digital finance in India.
The company will primarily operate in the NBFC and credit market segments, with long-term intentions to expand into the insurance, digital payment, and asset management verticals. As part of the demerger, Reliance stockholders will receive one share of Jio Financial Services in exchange for holding one share of Reliance.
“Because different financial services are governed by different regulatory frameworks, we believe that an independent financial services entity will enable us to access the opportunities available in the Indian market,” Ambani stated in his letter.
While renowned banker KV Kamath will serve as non-executive chairman of Jio Financial Services, Isha Ambani has been appointed to the board of JFS as a non-executive director. Hitesh Sethia, a veteran ICICI executive, will take over as CEO and MD.
In addition, Charanjit Singh Attra, who recently left as Chief Financial Officer of the State Bank of India (SBI), has joined Jio Financial Services as Chief Operating Officer. His LinkedIn profile has been updated to reflect the significant professional change.
The oil-to-telecoms conglomerate’s net profit for the April-June quarter was Rs 16,011 crore, down from Rs 17,955 crore year on year. The company’s sales was Rs 2.07 lakh crore, down from Rs 2.19 lakh crore the previous year.
EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation) was Rs 38,093 crore for the quarter, compared to Rs 37,997 crore the previous year. Whereas the EBITDA margin was 18.3 percent, up from 17.3 percent last year.
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