Jio Financial Services is in no hurry to enter the unsecured lending space, with Managing Director and CEO Hitesh Sethia saying expansion into riskier segments would be “a matter of timing” as the company is focussing on strengthening its secured loan book and balance sheet.
Contrary to expectations at the time of demerger, the company chose to begin with secured lending rather than unsecured products. Currently, 44% of its assets under management (AUM) is backed by property through loans against property and mortgages, while 10–11% is secured against financial assets such as shares and mutual funds. The remaining 45% comprises supply chain and corporate lending.
Unsecured personal loans and credit cards available on the company’s platform are routed through its marketplace model and are not part of its underwriting book. “Products outside our risk appetite are offered through partners,” Sethia said, adding that no single lender can meet the entire spectrum of risk demand in the country.
Sethia on comapny’s risk absorption capacity
While segments such as vehicle finance and other retail categories are under evaluation, Sethia said the company would first continue to build “risk absorption capacity” before entering relatively riskier products. Jio Financial’s lending arm has grown from scratch two years ago to Rs 25,700 crore AUM, with quarterly disbursements exiting at around Rs 10,000 crore. The NBFC reported a profit of about Rs 224 crore for FY26.
On the question of potential classification under the Reserve Bank of India’s upper-layer NBFC framework, Sethia said the current lending book does not yet meet the proposed scale thresholds. Draft norms indicate a Rs 1 lakh crore consolidated threshold for possible identification, subject to regulatory notification.
However, he said even if classified as an upper-layer NBFC, it would not materially alter the company’s operations. “Governance has been our highest priority from day one. We are adhering to bank-level standards in terms of processes, controls and customer conduct,” he said, adding that the firm maintains open engagement with regulators.
Beyond lending, the group is simultaneously building out its other financial verticals — investments, insurance and payments. The asset management joint venture with BlackRock, launched nine months ago, has reached an average AUM of Rs 16,712 crore in the latest quarter.
The company has launched 14 schemes so far and plans to roll out additional products, including specialised investment funds and Gift City offerings. In payments, both the payments bank and payments services entities are progressing towards profitability, Sethia said, adding that segment reporting will provide clearer visibility going forward.
The company also received its reinsurance licence in March and is working towards converting its non-binding agreement for life and general insurance into a binding joint venture before seeking regulatory approvals.
On funding, Jio Financial’s leverage stands at around 3–3.5 times, with cost of funds at approximately 7%, which the company described as best-in-class among peers. Borrowings are diversified across banks and market instruments. Sethia said the company remains “extremely bullish” on India’s long-term consumption prospects, adding that any near-term macro or geopolitical volatility would not alter its broader strategy.
On Friday, the company reported a consolidated net profit of Rs 272.2 crore, down 14% on year, despite the consolidated total income for the reporting quarter rising 97% on year to Rs 1,019.7 crore. On Monday, the shares of the bank fell 3.9% intra-day and closed at Rs 237.05, down 2.8% on BSE.