Jio Financial playing major role in driving inclusive growth via digital infra: K.V. Kamath

At the second annual general meeting since the listing of Jio Financial Services, its leadership highlighted the company’s readiness in a world that is increasingly becoming digital, where artificial intelligence and advanced analytics are on the rise.

“In this context, organisations like ours will play a critical role in meeting the diverse financial needs of individuals and businesses, ensuring deeper penetration of financial services across the length and breadth of the country,” said K.V. Kamath, chairman, Jio Financial Services, in his address at the AGM. The creation of a robust digital public infrastructure has been one of the most remarkable achievements in recent years, with these platforms helping to bridge the rural–urban divide, bringing millions of first-time users into the formal economy, and enabling a new age of digital ecosystem that is inclusive and equitable.

Kamath highlighted the major developments that Jio Financial Services had taken in what was a ‘pivotal’ year for it, according to Kamath. He also stated that India is on the threshold of an “extraordinary decade,” with several favourable factors, including a young population, rising income levels, policy-led reforms, a strong infrastructure push, and digital adoption at scale. “Our economy is well-placed to sustain a GDP growth of around 6.5-7%, making it the fastest growing major economy in the world.”

In his address, Jio Financial Services CEO Hitesh Sethia explained the major developments of Jio Financial Services that Kamath touched upon in his address. He highlighted the AUM of Jio Credit has increased to ₹11,665 crore in the first quarter. “(The AUM) is driven by a well-diversified portfolio of secured products, including home loans, loans against property, loans on securities, and corporate lending solutions,” he added. Sethia also highlighted that Jio Credit now has a physical presence in 11 cities.

Earlier this month, Jio Financial Services signed an agreement with the Allianz Group for a 50:50 reinsurance joint venture in India. The reinsurance joint venture will combine Jio Financial Services’ local market knowledge with Allianz’s global reinsurance and underwriting expertise. “We have also signed a non-binding agreement with them to explore the setting up of general and life insurance joint ventures in India,” Sethia said.

Sethia also expressed confidence in Jio Financial Services’ partnership with BlackRock, which he believes will “redefine investing in India.” The Jio BlackRock AMC now has eight funds across debt and equity index categories. “This is a solid base for it to grow on, as it introduces new and innovative offerings in the market—across the entire spectrum of actively managed and index funds.” Jio BlackRock Asset Management’s first NFO attracted 90 institutional and 67,000 retail investors, resulting in investments of over ₹17,800 crore.

The payments bank vertical of the company is set to launch a new product called “Savings Pro”, according to Sethia, which, he said, will offer customers India’s first savings account that auto-invests idle cash in overnight mutual funds for better returns.