Comments
Reliance Industries Ltd will demerge its financial services undertaking, Reliance Strategic Investments Limited (RSIL), to be renamed Jio Financial Services Limited. The entity would be listed on the Indian stock exchanges.
RSIL is currently a wholly-owned subsidiary of RIL and is a RBI-registered non-Deposit taking Systemically Important (ND-SI) NBFC.
Pursuant to the scheme, shareholders of RIL will receive one equity share of JFSL of face value ₹10 for one fully paid-up equity share of ₹10 held in RIL. The RIL Board has approved this based on the recommendations of the independent valuer and merchant bankers.
‘Large market’
“With secular growth drivers, the Indian financial services sector is poised to undergo a digital transformation. The sector presents a large, under-penetrated and growing addressable market, especially for retail and small-business-focused product categories. JFSL and its subsidiaries will leverage the technology capability of Reliance and focus on the digital delivery of financial products to democratise financial services access for 1.4 billion Indians,” the company said.
Reliance has been developing digital led-financial services platform through various digital applications. The current footprint touches more than 20 million consumers.
“JFS plans to launch consumer and merchant lending business based on proprietary data analytics to complement and supplement the traditional credit bureau-based underwriting. JFS will continue to evaluate organic growth, joint-venture partnerships as well as inorganic opportunities in insurance, asset management and digital broking segments,” the company said.
Tech-led business
Mukesh Ambani, CMD, Reliance Industries Limited, said: “JFS will be a truly transformational, customer centric and digital-first financial services enterprise offering simple, affordable, innovative and intuitive financial services products to all Indians. JFS will be a technology-led business, delivering financial products digitally by leveraging the nation-wide omni-channel presence of Reliance’s consumer businesses. JFS is uniquely positioned to capture multiple growth opportunities in financial services bringing millions of Indians into formal financial institutions.”
Comments
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.