Jio Financial to acquire SBI stake in Jio Payments Bank for Rs 104.5 crore

The State Bank of India (SBI) has made the decision to sell its complete 17.8 percent share in Jio Payments Bank Limited, which is a collaborative venture with Jio Financial Services (JFS). JFS will purchase SBI’s stake for ₹104.5 crore, resulting in Jio Payments Bank becoming a wholly-owned subsidiary of JFS, as announced by the Reliance Group on Tuesday.

At present, JFS possesses an 82.17 percent stake in Jio Payments Bank.

“The Board of Directors of the company, at its meeting held today, have approved acquisition of 79 million equity shares of Jio Payments Bank from SBI for an aggregate consideration of ₹104.54 crore,” JFS said in an exchange notification.

SBI has announced in an exchange notification that the executive committee of its Central Board of Directors has sanctioned the divestment of the bank’s entire stake in Jio Payments Bank Limited. The stake will be sold at a price of ₹13.22 per equity share to Jio Financial Services, resulting in a total realization of ₹104.5 crore, pending all necessary regulatory approvals.

The acquisition awaits the approval of the Reserve Bank of India (RBI) and is anticipated to be finalized within 45 days following the RBI’s consent, according to JFS.

At present, there are five payments banks operating in the country, which include Airtel Payments Bank, Fino Payments Bank, India Post Payments Bank, NSDL Payments Bank, and Jio Payments Bank. On Tuesday, shares of JFS were trading at ₹206.25, reflecting an increase of 2.64 percent.