Jio Financial Services: Jio Financial Services Limited can become the fifth largest financial services company in the country. Macquarie Research has said these things in its research report. Actually Reliance Industries is going to enter the financial sector through Jio Financial Services Limited. This company is going to be demerged from Reliance Industries, after which it will be listed on the stock exchange.
At present, HDFC Bank, State Bank of India, ICICI Bank and Axis Bank are the four big financial companies in the country. According to Macquarie Research, Jio Financial Services Limited has full potential to expand its balance sheet. Assuming that Jio Financial Services has 6.1 percent stake in Reliance Industries, then according to that its net worth becomes Rs 1 lakh crore, according to which it will become the fifth largest financial institution in the country.
According to the report, Jio Financial Services can emerge as a big player in the payment business, after which a big challenge can arise in front of fintech companies. Jio Payment Bank can be made a subsidiary of the proposed Jio Financial Services Limited. The board of Reliance Industries, approving the demerger of Reliance Strategic Investment Limited (RSIL), has decided to list the company on the stock exchange with the new name of Jio Financial Services. RSIL is currently a subsidiary of Reliance Industries. Shareholders of Reliance Industries will get one share of Jio Financial Services for every Reliance share.
Jio Financial Services will foray into asset management with insurance, payments, digital broking, for which the company has a regulatory license. According to the Macquarie Research report, Jio Financial Services will not be able to get a banking license because RBI is not in favor of giving banking license to corporate houses. Reliance already has an NBFC license.
News Reels
Due to the challenges faced by Jio Financial Services, the stock of Paytm has seen a decline of more than 11 percent on Tuesday. Bajaj Finance is also going to get tough competition from Jio Financial Services.
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