Mukesh Ambani's Jio Financial Services to launch new loan products
Jio Financial Services (JFS) is gearing up to launch a variety of loan products, including auto and home loans, as the Mukesh Ambani-backed company aims to become a one-stop financial services firm in India's rapidly growing market. Despite strong growth, the penetration of financial investment products in India remains low compared to the size of the economy. Ambani is looking to capitalize on this market after making waves in the telecom and retail sectors.
Existing and upcoming loan services
JFS has already rolled out personal loans for salaried and self-employed individuals in Mumbai and consumer durable loans across 300 stores in India. The company plans to broaden its offerings by launching business and merchant loans for self-employed individuals. JFS shared these operational details during a presentation to analysts, offering insight into its plans since its listing in August.
Insurance broking and payments bank initiatives
Besides loan services, JFS's insurance broking arm has teamed up with 24 insurance companies. Its payments bank division, which recently relaunched savings account and bill payment services, plans to introduce debit cards. The company aims to use technology and artificial intelligence as its "growth differentiator" and is developing an app to offer its products. JFS has also partnered with US asset manager BlackRock to launch asset management services in India.
Strong earnings report and market response
JFS on October 16 announced its first-ever quarterly results since going public in August. The company posted an impressive 101.3% increase in consolidated profit, reaching Rs. 668.18 crore for the September quarter, up from Rs. 331.92 crore in the June quarter. At the time of writing, JFS shares traded flat at Rs. 224.90 apiece on the NSE, up marginally by 0.04%.
