The consolidated net profit of Jio Financial Services, the NBFC arm of Reliance Industries, slumped 56% quarter-on-quarter (QoQ) to Rs 294 crore for the December quarter due to higher expenses and lower total income. Total expenses rose to Rs 98 crore from Rs 71 crore in the July-September period. Total income fell nearly 32% to Rs 414 crore.
The provision for taxation rose to Rs 88 crore for the quarter under review from Rs 86 crore in the previous quarter. The consolidated results of Jio Financial Services include those of its subsidiaries, associates, and joint ventures. These include non-bank lender Jio Finance, Jio Insurance Broking, Jio Payments Bank, and payment aggregator Jio Payment Solutions.
In its latest investor presentation, the company announced that it has increased focus on secured lending following the Reserve Bank of India (RBI)’s move to increase risk weights on unsecured consumer loans.
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Jio Finance is working towards launching home loans, and loan against securities. It also plans to launch leasing business and supply chain financing, the investor presentation said.
Jio Insurance broking subsidiary has entered into partnerships with 27 insurance companies across categories. The company has launched embedded, extended warranty, and sachet insurance products.
Jio Payments Bank has completed a soft launch of debit card products. It also plans to launch digital savings bank accounts. Jio Payment Solutions has adopted various measures, including the implementation of dynamic quick response codes across the ecosystem, launching an application for merchants, pilot launch of Jio Voice box, and enabling Jio Bharat phones with UPI 123.
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Overall, the company announced that it has put its technology stack in place with artificial intelligence, alternate data and bolt-on features. It has also put a management team in place and reconstituted board of directors for material subsidiaries.
It has filed an application with the RBI to convert to a core investment company from an NBFC. Such a conversion would enable the company to invest assets within group companies. The licensing of the company’s asset management joint venture is underway as planned, the presentation said.
Separately, the company announced that it has appointed Rupali Adhikari Sawant as group head – internal audit. It has also appointed Sudheer Reddy Govula as group chief compliance officer for four years with immediate effect.
