Reliance’s Jio Financial Services Receives Approval for New Leadership

Reliance’s Jio Financial Services (JFS) has garnered approval from the Ministry of Corporate Affairs (MCA) for the designation of Hitesh Kumar Sethia as its new managing director and CEO.

Appointment Confirmation and Visa Provision

Sethia has been designated as the new MD and CEO of the company for a duration of three years beginning November 15, 2023. JFS disclosed in a regulatory filing with the bourses that it received the approval communication from the MCA on April 24.

In its filing with the BSE, JFS stated, “We wish to inform you that the Ministry of Corporate Affairs vide letter dated April 24, 2024, has accorded its approval for the appointment of Shri Hitesh Kumar Sethia as Managing Director and Chief Executive Officer effective November 15, 2023, for a period of three years.”

Nevertheless, the approval correspondence specifies that the “expatriate managerial personnel (Sethia)” will be permitted to enter India on a “proper employment visa.” The authorization for the appointment was granted under various provisions of the Companies Act, 2013.

Strategic Moves and Financial Ventures

Jio Financial Services pursued clearances related to the appointment earlier this year in January. JFS made its debut on the bourses in August last year subsequent to its demerger from parent entity Reliance Industries.

This approval arrives at a juncture when JFS is enhancing its presence in the financial services domain. Last year, it inked a joint venture (JV) with BlackRock to venture into the Indian asset management sector under the banner of Jio BlackRock.

Earlier this month, both entities unveiled another JV to establish wealth management and brokerage operations.

The corporation recently announced its efforts to address the working capital requirements of suppliers in the lending sector and has aspirations to diversify into new sectors such as home loans, loan against property, and loan against mutual funds in the foreseeable future.

Concurrently, JFS has launched its debit card and a merchant mobile app as components of its payments business and has initiated the pilot phase of its voice box in Mumbai. In the insurance sphere, JFS asserts to have established collaborations with 29 insurance firms.

Financial Performance

Jio Financial Services observed a 6% quarter-on-quarter (QoQ) surge in its net profits to INR 311 Cr in the quarter concluding March 2024. During the corresponding period, the company’s operating revenue experienced a slight increase to INR 418 Cr from INR 414 Cr in Q3 FY24.