TLDR: Jio Financial Taking Balanced Approach; Limited Risk for Bajaj Finance and Banks: Jefferies

Jefferies, a financial services company, believes that Jio Financial Services Ltd (JFS) is taking a balanced approach to growth and sees limited risk for Bajaj Finance Ltd and banks. During a short investor call, JFS management highlighted the large opportunity in lending, especially in the unsecured lending segment. Jio Financial will focus on secured products with the launch of DaaS (Device-as-a-Service), which involves leasing of airfiber, phones, and laptops, as well as supply chain financing, loan against shares, and home loans. Jefferies has a target price of Rs 9,470 for Bajaj Finance and did not offer a target for JFS, but suggested Rs 3,125 as the price target for Reliance Industries Ltd.

In addition to lending, Jio Financial has expanded its client base in insurance broking to 27 and is ramping up its payments bank and payments platforms. The company has tied up with three more insurers, revamped its digital savings bank account within Payments Bank, and undertaken a soft launch of a debit card. It has also carried out a pilot launch of Jio Voice box, enabled Jio phones with UPI, and is implementing QR codes across the ecosystem. Jefferies noted that JFS has applied to Sebi for an asset management license in partnership with Blackrock and has put a management team in place. JFS has also filed an application for conversion from a NBFC (Non-Banking Financial Company) to Core Investment Company (CIC) and formed a separate subsidiary, JIASL, to undertake leasing operations.