Jio Financial's arm gets RBI nod to operate as online payment aggregator; shares react

Jio Financial Services shares saw a decent uptick in Tuesday's trade after the company's subsidiary received approval from the Reserve Bank to function as an online payment aggregator. The stock was last seen trading 2.49 per cent higher at Rs 324.65.

The non-banking financial company (NBFC), in an exchange filing, said, "Jio Payment Solutions Ltd (JPSL), a wholly-owned subsidiary of Jio Financial, vide its e-mail dated October 28, 2024, has informed the company (received by the company at 6 pm) that the Reserve Bank of India has granted certificate of authorisation to JPSL to operate as an 'Online Payment Aggregator' under Section 7 of the Payment and Settlement Systems Act, 2007, with effect from October 28, 2024."

Separately, Jio Financial and BlackRock today agreed to form a joint venture to enter India's asset management industry. "We would like to inform that two companies, 'Jio BlackRock Asset Management Pvt Ltd' and 'Jio BlackRock Trustee Pvt Ltd' have been incorporated on October 28, 2024, to carry on, inter alia, the primary business of mutual fund, subject to regulatory approvals," it stated.

This is the third JV between the US-based asset management firm and the Indian financial services company. Earlier in April this year, Jio Financial had signed an agreement with BlackRock to form a 50:50 joint venture (JV) for setting up a wealth management and broking business in India. Before this, the duo had launched an asset management venture in 2023.

In another development, Jio Financial said one can now invest in 'SmartGold' through the JioFinance app. "Buying gold on the auspicious occasion of Dhanteras is a long-standing Indian tradition, which ushers in wealth, prosperity, good fortune, and positive energy. To celebrate this festive season, customers can buy digital gold by investing in SmartGold through the JioFinance app," the NBFC mentioned.

"SmartGold offers customers a completely digital, secure and seamless process for buying gold and redeeming their investments in exchange for cash, or gold coins, or gold jewellery. Customers can now invest in digital gold anytime, anywhere, starting as low as Rs 10. Customers can also choose flexible options to buy SmartGold in rupees or grams. They also have the option of directly buying gold coins from the digital platform, and having it delivered to their doorstep," it also said.

On the earnings front, the company reported a 3.13 per cent year-on-year (YoY) rise in its second-quarter net profit for the ongoing financial year 2024-25 (Q2 FY25). During the quarter under review, profit came at Rs 689 crore as against Rs 668 crore in the year-ago period.

In terms revenue from operations, Jio Financial saw a YoY uptick of 14.06 per cent, at Rs 693.50 crore, in Q2 FY25 from Rs 608.04 crore in the corresponding period last fiscal. The company's net worth came at Rs 1,37,144 crore at the end of September this year.

As of September 2024, promoters held a 47.12 per cent stake in the non-bank firm. Jio Financial's stock has a price-to-equity (P/E) ratio of 383.44 against a price-to-book (P/B) value of 8.11. Earnings per share (EPS) stood at 0.83 with a return on equity (RoE) of 2.12.