Mukesh Ambani’s company, Jio Financial Services, has achieved significant success.
Its subsidiary, Jio Payment Solutions Limited (JPSL), has received approval from the Reserve Bank of India (RBI) to operate as an online payment aggregator.
Following this announcement, investors quickly bought shares in Jio Financial, causing the stock price to rise by 2 percent to Rs 325.75. The stock’s highest price in the last 52 weeks is Rs 395.
Opportunities for Growth
This approval comes at a time when the fintech company Paytm is facing regulatory issues with the RBI. This creates an opportunity for Jio to capture more market share in digital financial services.
Jio Payments Bank, part of Jio Financial Services, currently offers digital savings accounts that use biometric authentication and provide physical debit cards. The bank has over 1.5 million active users.
Recently, Jio Financial Services launched an updated version of its Jio Finance app. The beta version was released on May 30, 2024.
Additionally, Jio Finance Limited, the non-banking financial company (NBFC) under Jio Financial Services, is in the final stages of launching home loan services, which are currently in a trial phase.
The company also plans to introduce new products, including loans against property and securities.
Financial Performance Update
In the second quarter ending September 2024, Jio Financial Services reported a slight profit increase of 3 percent, reaching Rs 689 crore, compared to Rs 668 crore in the same quarter last year.
The total income for the quarter rose to Rs 694 crore, up from Rs 608 crore a year ago. However, total expenses doubled to Rs 146 crore, compared to Rs 71 crore in the same period last year.