People stand next to a logo of Jio Financial Services ahead of its listing ceremony at the Bombay Stock Exchange in Mumbai, India, August 21, 2023.
Credit: Reuters Photo
Bengaluru: India's Jio Financial Services JFS plans to launch auto, home loans and other products, as the billionaire Mukesh Ambani-backed company seeks to establish itself as a full-service financial services firm in a rapidly growing market.
Despite strong growth, penetration of financial investment products in India is low relative to the size of the economy. Ambani is looking to tap into this market after similar disruptive forays into the telecom and retail sectors.
JFS has already launched personal loans for salaried and self-employed individuals in the financial capital of Mumbai and consumer durable loans across 300 stores in India, it said in a presentation to analysts late on Monday, offering a first glimpse into operational details that had largely been vague at the time of its listing in August.
It will now also launch business and merchant loans for self-employed individuals, it said.
The company's insurance broking arm has also partnered with 24 insurance companies, while its payments bank division, which relaunched savings account and bill payment services, plans to launch debit cards.
Betting on technology and artificial intelligence to be its "growth differentiator", the company is also working on an app to carry its products.
JFS' first earnings report after being carved out of parent Reliance Industries and listed on the stock exchanges showed second-quarter profit doubled from the previous three months.
Shares of the company rose as much as 3.7 per cent in early trading, before paring some of the gains to trade 2 per cent higher.
Jio Financial, which has tied up with US asset manager BlackRock to launch asset management services in India, listed at a sharp discount. The stock was down about 14 per cent , as of Monday's close.
JFS is likely to take a "balanced approach to growth," Jefferies analysts said, adding that they see limited risk for rival Bajaj Finance and other leading retail banks.