Ambani's Fintech Gambit: Jio Financial Services Buys Out SBI's Shareholding in Payments Bank for ₹1.05 Billion

Mukesh Ambani's Jio Financial Services (JFS) has made a strategic announcement of acquiring State Bank of India's (SBI) complete 17.8% holding in Jio Payments Bank for ₹1.05 billion (or $12.03 million). The acquisition will turn Jio Payments Bank into a subsidiary company of JFS, with enhanced presence in India's digital financial services space.

 

Important points:

 

JFS now owns an 82.17% holding in Jio Payments Bank

 

Deal gives Jio Payments Bank a value of around ₹587 crore

 

Transaction is regulatory clearance subject to the Reserve Bank of India's approval

 

Seen to complete in 45 days of regulatory nod

 

This initiative is in keeping with JFS's strategy of building its digital financial solutions book. The stocks of the company reacted positively with an increase of almost 4% after the announcement. Experts see this as a strategic move to consolidate JFS's place in the burgeoning fintech industry.

 

Source: Based on RBI filings and reports by Reuters, Economic Times, and Business Today