SBI To Exit Jio Payments Bank After Selling Stake To Jio Financial
The board of Jio Financial Services Ltd. approved the acquisition of 7.9 crore shares of Jio Payments Bank Ltd. from State Bank of India for Rs 104 crore.
Currently, JFSL holds an 82.17% stake in JPBL, a joint venture of the company and SBI, according to exchange filings by the companies.
After this acquisition, the payments bank will become a wholly owned subsidiary of the company. The acquisition is subject to approval of Reserve Bank of India and is expected to be completed within 45 days after the RBI's approval.
Separately, the executive committee of SBI also approved the divestment of the bank's entire stake at a price of Rs 13.22 per share in JPBL to JFSL.
In August, the company had subscribed to 6.8 crore shares for Rs 68 crore as part of its strategy to bolster its financial services portfolio.
In April 2018, JPBL was launched as a 30:70 joint venture between SBI and Reliance Jio, with SBI's 30% holding valued at over Rs 69 crore.
As of March 31, 2024, Jio Payments Bank had deposits worth Rs 87.95 crore, up over 226% year-on-year, according to the balance sheet released by SBI. Most of the deposits were in the 12-36 month category.
The payments bank recorded a net loss of Rs 58.52 crore for the last financial year, larger than the Rs 44.4 crore reported a year before. Net interest margin for the year was 6.05%, compared with 3.63% a year before.
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