State Bank of India divested its entire stake in Jio Payments Bank Ltd. to Jio Financial Services Ltd. for Rs 104.5 crore on Wednesday.
The state-owned lender had received board approval in March for selling 7.9 crore equity shares of JPBL at Rs 13.22 apiece, according to a stock exchange filing.
Following necessary approval from the Reserve Bank of India, SBI executed the share purchase agreement with JFSL and JPBL on Wednesday and transferred the entire shareholding in JPBL to JFSL. "Post conclusion of the transaction, the Bank's shareholding in JPBL has been reduced to nil."
In its stock exchange filing, JFSL informed that following the acquisition, JPBL has become a wholly owned subsidiary of the company.
JPBL commenced operations in April 2018 after it received the RBI's approval to operate as a payments bank. The company currently provides digital savings accounts with biometric authentication and a physical debit card.
Its offerings include zero-balance savings accounts, UPI-enabled payments, and innovative sweep accounts that optimise idle funds, essential services like domestic money transfer, Aadhaar-enabled payment system and Bharat Bill Payment System.
Shares of JFSL ended 0.62% lower at Rs 288 apiece and SBI settled flat at Rs 791.75 apiece on the BSE. The benchmark Sensex declined 0.17%.
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