SBI’s whole Rs 104 cr stake in Jio Payments Bank will be purchased by Jio Financial Services.

In a strategic move to consolidate its financial services portfolio, Jio Financial Services (JFS) has announced plans to acquire the State Bank of India’s (SBI) entire 17.83% stake in Jio Payments Bank for ₹104.54 crore. This acquisition will transition Jio Payments Bank into a wholly-owned subsidiary of JFS, subject to regulatory approvals.

Details of the Acquisition

JFS currently holds an 82.17% stake in Jio Payments Bank, a joint venture initiated with SBI in 2018. The proposed acquisition involves purchasing approximately 7.9 crore equity shares from SBI at ₹13.22 per share, valuing Jio Payments Bank at nearly ₹586 crore. ​

Regulatory Approvals and Timeline

The completion of this transaction is contingent upon approval from the Reserve Bank of India (RBI). Once approved, the acquisition is expected to be finalized within 45 days.

Strategic Implications for JFS

Since its demerger from Reliance Industries in 2023, JFS has been actively expanding its financial services footprint. The full ownership of Jio Payments Bank aligns with JFS’s strategy to enhance its presence in digital banking and payments, positioning it to compete more effectively with other payments banks in India.

Conclusion

The acquisition of SBI’s stake in Jio Payments Bank signifies JFS’s commitment to strengthening its financial services offerings. This move is expected to streamline operations and enable JFS to introduce innovative financial products, further solidifying its position in India’s digital banking sector.

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