Jio Financial aims to disrupt home loan market
Jio Financial Limited (JFL), the financial services division of Reliance Industries Ltd., is preparing to launch its home loan products. The announcement was made during the company's first annual general meeting since its listing on stock exchanges in August 2023. Currently, these products are being tested in beta mode. In addition to home loans, JFL also plans to offer loans against property and securities.
Jio Financial's existing services and future plans
JFL has already introduced several secured lending products, including supply chain financing, loans on mutual funds, and enterprise solutions for device financing. The company's JioFinance app, launched in beta mode on May 30, 2024, has garnered over one million downloads. Additionally, Jio Payments Bank—a subsidiary of JFL—has acquired over one million CASA (Current Account and Savings Account) customers by offering digital banking solutions to retail customers and small businesses.
JFL's joint venture with BlackRock and insurance initiatives
JFL's joint venture with BlackRock, announced in July 2023, is also making significant progress. Each partner has initially invested $150 million to expand investment products. The tech infrastructure and go-to-market strategy for this venture are in advanced stages. On the insurance front, Jio Insurance Broking Limited (JIBL) has partnered with 31 leading private and public sector insurance companies to offer insurance products through the JioFinance app.
JFL's foreign investment limit and financial performance
JFL has recently received approval to increase its foreign investment limit to 49%. As of now, foreign investors hold 17.55% of the company's shares. For the first quarter ending June 30, 2024, JFL reported a net profit of ₹313 crore, marking a 6% decrease from ₹332 crore in the same period last year.
