Jio Financial Services received approval by the Reserve Bank of India (RBI) on Thursday to become a Core Investment Company (CIC) from a Non-Banking Financial Company (NBFC), said the company in an exchange filing.
Reliance Industries Ltd,a conglomerate that focuses in energy to telecom, split out to form Jio Financial Services.
In November of last year, Jio Financial Services submitted an application to the RBI to convert from an NBFC to a CIC.
In order to incorporate the firm, Jio Financial Services applied to the RBI following the demerger of Reliance Industries' financial services division.
A CICis a specialised NBFC with assets larger than ₹100 crore, according to media reports. A CIC's primary responsibility, according to the RBI circular of December 20, 2016, is to purchase shares and securities subject to specific restrictions. At least 90% of the CIC's net assets must be invested in bonds, debentures, equity shares, preference shares, debt, or loans made to group firms.
All CICs with assets more than ₹100 crore are subject to Reserve Bank of India regulations.
On August 21, 2023, Jio Financial officially debuted on the stock exchanges. On Thursday's session, Jio Financial Services share price closed flat at ₹348.05 apiece on BSE.
Reliance Industries, the parent firm of Jio Financial Services, will release its June quarter financial results on Friday, July 19.
Due to an improvement in income, Jio Financial Services recorded a 6% rise in consolidated net profit for the fourth quarter that ended in March 2024, totaling ₹311 crore. The financial services firmdeclared a profit for the quarter ending in December of ₹294 crore.
Jio Financial Services stated in a regulatory filing that the company's consolidated net profit increased multi-fold, from ₹31 crore in the previous fiscal year to ₹1,605 crore in FY24.
From ₹414 crore in the December quarter to ₹418 crore, its revenue increased marginally.
In addition to investment and lending, Jio Financial Services also offers payment gateway, bank, and payment aggregator services.
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