The company sees adequate room to expand within its existing product lines and does not view capital as a constraint at this stage, he told ET in an interview.
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“We want to build balance sheet strength before we expand the risk appetite-there is enough runway in the products that we have, enough runway for leverage, and capital is not an issue for us,” Sethia said.
The non-banking financial company’s loan book is split roughly 45% in property-backed lending, 40-45% in corporate lending and 10-11% in financial assets-backed lending. Products span home loans, loan against property, loan against shares, lending against mutual funds, and cash flow and asset-backed corporate supply chain finance. The company operates across 18 cities and 24 offices, with plans to expand to 20 cities, and serves 23 million customers.
On funding, Sethia said the reported cost of funds stands at 7%, with total borrowings at about ₹21,000 crore and leverage at a conservative 3.5 times. The company is AAA rated with access to both bank and capital market borrowings. “Cost of funds will move in line with the market, but that is yet to be fully reflected in the interest rate the customer pays – there is some lag,” he said.
While the company is evaluating unsecured lending, it is not sitting out the segment entirely. Through its marketplace, Jio Financial Services is offering personal loans and more than 50 credit card products. Its newly launched app clocked more than a million downloads in the first six weeks. “We want to become a full-service financial services provider for our customers,” Sethia said.Also Read: SFIO widens probe into IndusInd Bank; summons audit firms over ₹2,000 crore derivatives irregularities
Jio Payments Bank is also gaining momentum. The bank has scaled up from near zero to 3.7 million customers with deposits of ₹540 crore and has expanded its product suite to include Savings Pro and a FASTag acquiring business. With more than 350,000 business correspondent touchpoints and a continued focus on unit economics, the bank is well on its way to profitability, Sethia said.
The company’s payment aggregator business has surpassed a gross transaction value of ₹52,000 crore. Volume alone is not the objective, Sethia emphasised. “We are not blindly chasing volume or market share – we are targeting where we can add value to the customer and the shareholder. We are chasing profitable market share,” he said.