Jio Financial Services Ltd has secured approval from the Department of Economic Affairs to raise its foreign investment cap to 49% of the paid-up equity share capital on a fully diluted basis. Currently, foreign investors hold a 17.55% stake in the company, which forms part of the 53% public float of shares.
Jio Financial, a non-banking entity demerged from Reliance Industries Ltd in July 2023, reported a 6% year-on-year decline in its consolidated net profit for the quarter ending June 2024, down to Rs 313 crore from Rs 332 crore. This decrease was primarily driven by a reduction in interest income, which fell 20% to Rs 162 crore, alongside a rise in operating expenses, particularly staff costs that tripled to Rs 39 crore.
In the first quarter of 2024, Jio Financial introduced new financial products, including loans against mutual funds and digital insurance for automobiles and two-wheelers. Additionally, the company entered the ship leasing market, with its first lease through Reliance International Leasing IFSC Ltd, in collaboration with Reliance Strategic Business Ventures Ltd. The firm is also expanding its reach by growing its business correspondents’ network to 16,000 outlets and advancing its asset management joint venture with BlackRock, with infrastructure and technology platforms nearing completion.