JM Financial Management Discussions

€ Global Economy wades through uncertainties

The global economy continued to manoeuvre through uncertainties in FY23. Uncertainties pertaining to the likely escalation of Russia-Ukraine war, continuous disruption in global supply chain leading to inflation globally due to closing down of China were amongst the major events that provided maximum volatility to the markets. Expectation of an imminent recession got stronger as major central banks continued to tighten monetary conditions. However, on a positive note in mid FY23, notable improvement in supply chains led to easing inflationary pressures and entire commodity prices moderated, Brent crude prices peaked in FY23 and moderated ~35% by year end. Global growth projections were lowered to 2.9% for 2023 by IMF from 3.4% in 2022.

Indian Economy remains resilient with elevated inflation

Indian economy demonstrated resilience throughout FY23 even as global macroeconomic environment threw challenges in the form of tight monetary policy, reduced global demand, high commodity prices especially crude. Indias prudent fiscal planning aided in meeting the fiscal deficit target of 6.4% of GDP in FY23, moreover a lower Fiscal Deficit target for FY24 (5.9% of GDP) and record high capex allocation ( 10tn) reflected the governments strong intent to continue on its fiscal consolidation path, while carefully balancing the growth requirement of the economy. The uptick in benchmark yields (10yr Gsec) was marginal (50bps) even though the repo rates was hiked by 250 bps during this period, reflecting the confidence of the bond markets in the economy. GST collections have been consistently clocking above 1tn mark since last 21 months, collections reached record high of 1.6tn in Mar23. Indias trade deficit reached as high as USD 29.3bn in Sep22 vs USD 15.9bn avg. during FY22, which reduced significantly by the end of FY23 (USD 17.4bn in Feb). The positive improvement in trade balance was on account of sharp fall in imports vs exports, decline in oil prices and resilient services exports helped cushion the Current Account Deficit. The import cover ratio averaged 9.5 times during this period.

The global uncertainties hampered RBIs ability to provide a clear policy path going forward, and on the growth front RBI

scaled down the GDP growth projections for FY23 to 6.8% from 7.2% earlier. The scale down of the inflation projection (6.5% vs 6.7% earlier) for FY23 reflected that the RBI expects inflation to remain elevated with shallow moderation.

0% Sticky inflation keeps monetary conditions tight

The fall in pace of rate hikes (50bps in Sep22 to 25bps in Feb23) reflected RBIs comfort in growth and inflation dynamics in the country. The central bank continued to remain hawkish throughout FY23 as inflation hovered above the 6% mark, systemic liquidity reduced sharply from 6.6tn (Apr22) to 1tn in Mar23, it even turned deficit during Mar23 calling for RBIs intervention. The tightening liquidity condition was evident in the steep rise in overnight call money rates (6.4% vs 3.3% in Apr22).

The repo rate at 6.5% has already reached pre-pandemic levels. RBI like other central banks is targeting to bring down inflation decisively within the accepted tolerance band (4% + - 2%).

Resilience in external economy amidst global uncertainties

The external sector has continued to remain resilient amidst the global uncertainties and expectations of the spill over effects due to an imminent slowdown in the developed market economies. Indias exports reached an all-time high of USD 750bn in FY23 from USD 672bn in FY22. The growth in merchandise exports on a FYTD basis (Apr-Feb23) moderated to 7% vs 47% earlier, while imports growth moderated to 19% vs 59% earlier, trade deficit widened to USD 251 bn vs USD 173bn earlier. However, robust services balance (USD 125bn vs USD 93bn earlier) helped cushion the Current Account Deficit (CAD) in FY23. Software exports constitutes majority of Indias services exports and the consistent growth in this category is not reflecting the spill over effect of growth slowdown in DM economies (~ 90% of Indias software exports is concentrated in US and Europe). Indias forex reserves fell USD 39bn during FY23, but remained at comfortable levels of USD 579bn which comes to an import cover ratio of 9.5times.

Source: International Monetary Fund, RBI, CMIE


The corporate structure of JM Financial Group (the “Group”) as at March 31, 2023 is presented below:

JM Financial Limited (the “Company”) is the only entity in the Group whose equity shares are listed on the stock exchanges. In view of the above structure, the way to understand the business performance of the Company is to analyse the standalone businesses and the businesses of its Group Entities. Our Group has evolved over a period of time to a leading diversified financial services firm. We have a wide range of product offerings and cater to several customer segments. During the year, a Scheme of Arrangement was filed with the National Company Law Tribunal (NCLT) for demerger of the undertaking (the “Scheme”) comprising of Private Wealth and Portfolio Management Services (the“PMS”) along with the investment in JM Financial Institutional Securities Limited (which houses the institutional equities business) from its

wholly owned subsidiary, JM Financial Services Limited to JM Financial Limited. The Scheme also comprises merger of JM Financial Capital Limited, which is a wholly owned subsidiary of JM Financial Services Limited, into JM Financial Services Limited. The Company has received the NCLT order approving the Scheme on April 20, 2023 with the appointed date April 1, 2023. The Scheme shall become effective upon filing of certified copy of NCLT order with Registrar of Companies (the “ROC”). Once the Scheme comes into effect, the Private Wealth and PMS divisions shall become part of the Company and be classified under the Investment Bank segment from the Platform AWS segment.The core business area of the Group remains financial services. Our business segments are as follows:

• Investment Bank (IB): The integrated IB segment caters to Institutional, Corporate, Government and Ultra High Networth clients and includes investment banking, institutional equities and research, private equity funds, fixed income, syndication and finance. Once the order for the Scheme is filed with the appropriate authorities, the Scheme shall become effective. As stated above, Private Wealth and PMS businesses will form a part of the integrated Investment Bank, once the Scheme becomes effective.

• Mortgage Lending: Our mortgage lending segment includes wholesale mortgage and retail mortgage as follows:

> Wholesale mortgage which includes commercial real estate lending to real estate developers

> Retail mortgage which includes affordable housing finance business and secured MSME lending.

• Alternative and Distressed Credit comprises the asset reconstruction business and alternative credit funds and

• Asset management, Wealth management and Securities business (Platform AWS) provides an integrated investment platform to individual clients and comprises wealth management business, broking, PMS and mutual fund business.

Our business segments are discussed in detail below:

Integrated Investment Bank (IB)^^^^^

Investment Banking Business

Investment banking division is amongst the oldest businesses within the JM Financial group. We are a full service investment banking franchise present across products viz. equity capital markets, debt capital markets, mergers and acquisitions and private equity syndication with a strong track record of five decades. We have deep relationships into large and emerging corporates in India and have acted as their advisors for decades. These relationships have strengthened over time and have enabled us to be the advisor of choice for managing marquee clients. Our expertise and relationships have helped us handle some of the most complex, innovative, challenging and largest transactions in India.

We shall leverage our relationships and expertise built through our investment banking platform and we shall continue to provide solutions to our clients. We shall strive to deliver the entire firm to our clients and look to have a larger wallet share. Our pipeline of transactions is extremely healthy and subject to market conditions, we would look to execute the same over the course of FY 2023-24.

Market Environment Primary Market

The breakup of funds raised in public markets during FY 2022-23 as compared to the FY 2021-22 is as follows:

Capital market

FY 2022-23

FY 2021-22

FY 2022-23 v/s FY 2021-22


Rs. in Crore


Rs. in Crore

In %

Initial Public Offering (“IPO”)






IPO on the SME Platform
























Rights Issue






Qualified Institutions Placement (“QIP”)






Offer for Sale (“OFS”)






Total Equity Raised






Total Debt raised through Public issue






Total Amount Raised






(Source: Prime Database as on April 1, 2023)

Equity capital markets in India have shown resilience amidst one of the most turbulent time, the amount raised in FY23 is still the third highest ever in terms of IPO fund raise after FY22 and FY19. Throughout FY23, the market remained volatile and as a result 2/3rd of the IPOs came in just three months (May, November and December). 37 corporates raised over 52,000 Crore through IPOs in FY23 as compared to 53 corporates raising over 1.1 Lakh Crore through I POs in FY22.

JM Financial also continued its dominance in Equity Capital Markets successfully executing over 20 transactions in FY23. JM Financial is having a dominant share of ~60% of equity raised via IPOs during FY23. Our commitment and deep understanding of the Indian markets have helped our clients achieve their goals.

Mergers and Acquisition <1)/<2)/<3)

During FY 2022-23, a total of 1,276 deals were announced as compared to 1,312 deals in FY 2021-22. The total value of the deals announced was 13.2 Lakh Crore (4) for FY 2022-23 as against 9.4 Lakh Crore (5) for FY 2021-22

Domestic v/s Cross-Border Activity

During FY 2022-23, domestic transactions contributed 67% to the overall M&A activity with deal value aggregating 8.8 Lakh Crore compared to 39% in FY 2021-22 and a deal value aggregating 3.7 Lakh Crore.

Source: Mergermarket Notes

1. Deals are considered based on announcement date (excluding lapsed/withdrawn bids).

2. Deals where both target and bidder are outside India are not considered.

3. Deal values are converted from USD to INR based on the average exchange rates for FY 2021-22 and FY 2022-23 FBIL website i.e.

4. Total deal value for FY2022-23 does not include 380 deals for which deal values were not available.

5. Total deal value for FY2021 -22 does not include 351 deals for which deal values were not available.

Private Equity

In FY 2022-23, private equity deals worth 2.4 Lakh Crore were announced compared to 5.6 Lakh Crore in FY 2021 -22 (Source: JM Financial Estimates)

The sectors that experienced the maximum interest from private equity investors include IT/ITES, Consumer Tech and Financial Services.

Operational Performance of Investment Banking Business

During FY 2023, we concluded the following equity capital market transactions:

> Book Running Lead Manager to the IPOs of:

• Life Insurance corporation of India - 20,557 Crore

• Global Health (Medanta) - 2,688 Crore*

• Paradeep Phosphates - 1,502 Crore

• Archean Chemical Industries - 1,462 Crore

• Cam pus Activewear - 1,400 Crore

• Fusion Micro Finance - 1,104 Crore

• Bikaji Foods International - 880 Crore

• Uniparts India - 836 Crore

• Harsha Engineers International - 755 Crore

• Electronics Mart India - 500 Crore

• ELIN Electronics - 475 Crore including Pre-IPO

> Managers to the OFS in:

• Indian Railway Catering and Tourism Corporation by the President of India, acting through Ministry of Railways, Government of India - 2,720 Crore

> Book runner of Block Deals in:

• Sona BLW Precision Forgings by Blackstone - 4,917 Crore

• Sapphire Foods India by Samara Capital and Goldman Sachs Asset management - 958 Crore

• Campus Activewear by TPG - 806 Crore

• Gokaldas Exports by Clear Wealth Consultancy (Florintree Advisors) - 235 Crore

> Book Running Lead Managers to the QIP by:

• Indiabulls Real Estate - 865 Crore

• Data Patterns (India) - 500 Crore

> Buyback:

• Bajaj Auto - 2,500 Crore (Through Stock Exchange)

• UPL - 1,100 Crore (Through Stock Exchange)

Mergers & Acquisitions and Private Equity Syndication

We are proud to maintain our growth momentum in the Indian M&A industry, having successfully announced nine new M&A transactions with a combined deal value of ~ 4,66,000 Crore during FY23.

Some of the marquee M&A transactions where JM Financial was an advisor during FY23 include:

• Exclusive financial advisor to Bandhan Financial Holdings, GIC, ChrysCapital (“Bandhan Consortium”) on acquisition of IDFC Asset Management Company and IDFC AMC Trustee Company from IDFC Limited;

• Financial advisor to HDFC Limited on its merger with HDFC Bank Limited*;

• Exclusive financial advisor to Hero FinCorp on fundraise from Apollo Global Management and other investors;

• Exclusive financial advisor and exclusive manager for the open offer to the shareholders of New Delhi Television by the subsidiaries of Adani Enterprises;

• Advisor and manager in relation to the open offer to the shareholders of Eveready Industries;

• Exclusive financial advisor to Rapido on fundraise from Swiggy, TVS Motors, WestBridge, Shell Ventures and Nexus Ventures;

• Manager to the Delisting Offer by Advent International for delisting of equity shares of DFM Foods;

• Announced Transaction, completion is subject to regulatory approvals

• Financial advisor on scheme of arrangement involving merger of Pioneer Distilleries with United Spirits;

• Exclusive financial advisor to the open offer by Shiva Performance Materials to the public shareholders of Ineos Styrolutions India;

• Exclusive financial advisor on scheme of amalgamation involving merger of Expleo India Infosystems into Expleo Solutions;

• Exclusive financial advisor to AM Marketplaces and its shareholders on acquisition by V-Mart;

• Fairness Opinion to the board of

o JSW Ispat on amalgamation of Creixent Special Steels, JSW Ispat Special Products with and into JSW Steel;

o ABB India Limited on valuation of its wholly owned subsidiary Turbocharging Industries and Services and India Private Limited;

o Kirloskar Ferrous Industries on the share exchange ratio on amalgamation of ISMT.

Source: Mergermaket and JM internal Database Institutional Equities

Our Institutional Equities business offers broking services in both cash and derivatives segments to Indian and global institutional clientele. We provide research services that focus on new stock ideas, intensive client servicing and efficient trade execution, complemented by post trade settlement. The performance of our Institutional Equities business is backed by years of investment in appropriate talent across sales, trading, research, operations, compliance and technology functions.

Equity markets and returns in last financial year havent been as easy as they were a year ago. Trading volumes have also been lower compared to the FY23 peak-levels. The Institutional Equities business performance, however, continued to be reasonably resilient. This was primarily achieved through years of investment in appropriate through a stable talent pool in sales, strong customer focus, consistent higher levels of servicing provided to its institutional clientele, differentiated service offerings together helped enhance the firms rankings amongst many of its top-tier institutional clients.

Yields in the business continued to trend lower which is a function of a) the highly competitive nature of institutional equities business and b) global active asset managers

consistently losing assets under management to passive asset managers. Profitability remained protected by judicious management of costs and extracting better operating leverage out of the talent pool and its technology platforms.

Indian equity markets have been volatile given concerns around inflation and interest-rates, geo-political tensions endangering global trade. We, however, expect Indian markets to do relatively better given the domestic household liquidity - Equity Inflows in mutual funds have averaged 186bn/month, with SIP inflows at 130bn/month and we expect these to remain stable.

Leverage Products

Our portfolio under this segment can be broadly classified into the following: (i) Capital markets lending; (ii) Bespoke finance; (iii) Wholesale mortgage (overflow) lending; (iv) Financial institutional financing; and (v) Retail Mortgage (including purchase pool of assets and lending in retail mortgage lending).

Capital Markets lending

Our Capital Markets Lending group offers loans against shares, and other securities to meet the fund requirements of various categories of clients inter-alia Retail, HNI, HUFs, and Corporate entities. The group also provides finance for investment in primary market issues as well as ESOP and mutual fund schemes. Loans under this segment are typically in the nature of short-term advances.

The capital markets loan book as at March 31, 2023 stood at 1,062 Crore as compared to 834 Crore as at March 31, 2022.

Bespoke Finance

The Bespoke Finance Group provides comprehensive financing solutions to operating businesses to refinance existing debt, working capital / capex funding and acquisition financing. We offer financing to promoter holding companies against listed / unlisted securities or mortgage of properties to meet their strategic requirements, such as stake accretion, investments, buying out of investors and debt refinancing. We differentiate our lending business basis our ability to provide large balance sheet commitment, strong syndication and placement capability superior client management and efficient turnaround time.

The Bespoke Finance book as at March 31, 2023 stood at 2,636 Crore as compared to 4,287 Crore as at March 31, 2022. During FY23, the Bespoke Finance Group focused on profitable short-term transactions and deployment of capital to support franchise clients. We ramped up our syndication business this year enabling balance sheet churn and higher profitability, whilst also creating a strong market recall for our transactions.

Given our overall low leverage and strong balance sheet position, we have a strong competitive advantage in underwriting complex transactions, thereby providing well- structured and speedy financing solutions to our clients.

Financial Institution Financing (FIF)

Our Financial Institution finance business provides customised credit facilities to Financial Institutions (FIs). FIF specialises in underwriting loans to FIs towards their onward lending program, such credit facilities are provided to NBFIs, who are rated between BBB and AA. The strategy is to partner with firms which have high-quality investors as part of their capitalisation table with strong management teams.

The FIF loan book for March 31, 2023 stood at 1,592 Crore as compared to 440 Crore as at March 31, 2022.

Real Estate Consultancy Services (

Dwello is a tech-based real estate consulting division operating within the primary residential real estate space. Our team, of experienced professionals and trained consultants, leverages cutting-edge technology and analytics and assists customers in making right decisions during their home buying journey.

Dwello has presence in top four Indian cities for residential real estate by volume viz., Mumbai, Pune, Bangalore and NCR. As on March 31, 2023, our portal displayed detailed information on 8,879 projects, with 5,262 projects from Mumbai, 2,907 projects from Pune, 550 projects from Bengaluru, 7 projects from Delhi and 153 projects from Gurugram. Our teams facilitated sales spanning 1.2 mn sq. ft. of carpet area, in this financial year.

A fair share of our visitors to the online portal come organically, enquiring about properties. Dwello has developed unique capabilities of acquiring customers digitally using its web assets including Dwello portal, CRM, analytics, and efficiencies achieved in its marketing processes.

Investment Grade, Debt Trading and syndication (Debt Capital Markets)

The Investment Grade Group (“IGG”) (erstwhile Institutional Fixed Income Division) in its third full year of operations consolidated its position in the league tables working extensively with issuers in both the private and public sector space. We continued to actively trade in corporate bonds and continued to provide market making in the debt ETF schemes where its a designated market maker. The key developments along with focus areas are as follows:

1. Public Issues of NCDs: In the public issue space, the team worked with first time issuers across both the private and public sector. We rank #3rd for the FY23 in the Prime Database League Table. The total volume of issuances managed in the public issue space was ~ 2,227 Crore and achieved a market share of 25%.

2. Private Placement: In the private placement space, the team worked extensively in top rated corporates, thereby consolidating its league table ranking to 10th on the table for FY23. We arranged ~ 1,51,264 Crore in the private placement space across 69 issuances.

3. Sales and Distribution: We actively traded and acted as a market maker in corporate bonds while continuously adding to the empanelled list of investors. The desk on- boarded 1,600 investors in FY23. The year saw OTC trade volume of ~ 26,798 Crore with ~ 1,896 counterparties while the exchange traded volume stood at ~ 327 Crore. The credit team provides credit views and monitoring of the credits that the team offers to the markets both from debt capital markets and sales perspective.

4. Market Making: Additionally, we continued market making as an authorised market maker for Debt ETF schemes providing two-way quotes on the exchanges. During the year, we added another two schemes to its market making portfolio, taking the total number of schemes to ten. The year saw trade volumes of ~ 1,768 Crore in ETF (market making) with ~ 648 Crore on the OTC platform and ~ 1,120 Crore on the exchange. We are #1 market maker in debt related index ETFs/ passive funds.


Bondskart - JM Financials Online Bond Platform, offering a portfolio of corporate bonds ranging from AAA to A credit rating continued to strengthen its reach during the year. The platform provides easy buying and selling of securities to investors.

Private Equity Fund Management

JM Financial India Fund II (“Fund II”) is a 2019 vintage (i.e., Final Close) private equity fund established as a trust under the Indian Trust Act, 1882 and registered with the Securities and Exchange Board of India (the “SEBI”) under the SEBI (Alternative Investment Funds) Regulations 2012, as a Category II AIF.

Fund II is an India-focused, sector-agnostic private equity fund, with the primary objective to achieve superior risk- adjusted returns by investing growth capital in dynamic and fast-growing, small to mid-market Indian companies. We believe that the small to mid-market opportunity is relatively less crowded, allowing attractive investment opportunities in early to growth stage companies that are in their early phase of expansion.

Key sectors of interest include financial services, consumer, manufacturing, technology and others (logistics, agri-allied sectors, etc.). Fund II has finalised ten investments and is fully deployed. In addition, Fund II has completed a partial divestment from one of its portfolio companies.

JM Financial India Growth Fund III (“Fund III”) completed its third closing in March 2023. As of March 31, 2023, Fund III has finalised four investments - API Holdings Limited, Aarman Solutions Private Limited, BigHaat Agro Private Limited and SilverEdge Technologies Private Limited, and continues to evaluate a strong pipeline of investment opportunities in its target segment. Similar to Fund II, Fund III is an India-focused, sector-agnostic private equity fund, with the primary objective to achieve superior risk-adjusted returns by investing growth capital in dynamic and fast-growing, small to mid-market Indian companies.

In addition to the two operating Funds, JM Financial also managed the JM Financial India Fund (“Fund I”), a 2006 vintage (i.e. Final Close) India focused private equity fund. Fund I raised 952 Crore and has successfully exited from all of its portfolio companies (including one partial exit) and distributed / appropriated an aggregate of 203% in INR terms (before income tax related retentions and reserves) of the capital contributions.

Our Private Equity fund business may face challenges in terms of our ability to raise funds and being able to exit portfolio companies at desired valuations. Further, our portfolio investments are subject to business specific and macroeconomic threats.

International Operations

We have established subsidiaries/step down subsidiaries in Mauritius, Singapore and USA to cater to and service overseas clients/investors and to carry out permitted business activities in these jurisdictions. We also have a representative office in Dubai.

Our IB segment is subject to threats which include

• macro-economic factors such as abnormal monsoon, geopolitical tensions, global economic threats impacting the business, economic situation, liquidity situation in the market, cost effective availability of funding and capital market environment; and

• business specific threats such as increased intensity of competition from players across the industry creating downward pressure on yields, fees, commissions and brokerages, regulatory challenges, technology innovations, amongst others.

Financial Performance of Investment Bank Segment

in Crore


FY 2022-23

FY 2021-22

Gross Income



Profit before tax



Profit after tax before noncontrolling interest



Profit after tax after noncontrolling interest



Segment Capital Employed



Mortgage Lending

The mortgage lending business is divided into two parts (i) Wholesale Mortgage Lending (ii) Retail Mortgage Lending.

Wholesale Mortgage Lending

The Wholesale Mortgage Lending business is focused on offering a solution-based approach to the clients in the

real estate sector by catering to their various financing requirements and by keeping in mind the typical nature of the industry. We consider our clients as partners and aspire to have significant mind share of our clients when it comes to financing requirements/solutions.

• Project Loans: Our wholesale mortgage financing business is primarily focused on providing project specific funding for ongoing residential and commercial projects which have received key regulatory approvals.

• Projects at Early Stage Loan: This is offered for projects that are expected to be launched in the nearterm. These projects are typically in the approval stage and may be raising funds for development and/or for seeking relevant approvals. These loans are typically advanced in part as a portion of a refinancing of existing loans and in part, as project related funding. Repayment of the loan is expected from project cash flows that will accrue during the loan tenure.

• Loan against Property: These loans are advanced against fully constructed residential and/ or commercial units that have been granted an occupation certificate. Repayment of the loan is expected from sale of the units.

• Loan against Securities: Clients may be granted these loan against a pledge of listed/unlisted securities of their companies to bridge the gap in the event the inventory of the developer is not being sold as expected, thereby offering cash flow to the developer until completion of the project. These loans are advanced to select borrower- groups with strong credit history in few cities. These loans are mainly provided for funding the clients group activities and repayment of existing loans (secured and unsecured).

As at March 31, 2023, the total loan book for wholesale mortgage lending stood at 8,445 Crore as compared to 6,286 Crore as at March 31, 2022.

The real estate sector over the last few years has witnessed very strong sales cycle resulting into a lot of cash inflows for the developers. On account of the high cash inflows, the utilisation of construction finance by developers is lower. These trends have impacted our ability to grow faster.

Retail Mortgage Lending

Our housing finance business commenced operations in 2017 in order to expand groups presence in retail mortgage space with a focus on affordable housing finance. JM Financial Home Loans Limited (the “JMFHLL”), the groups housing finance entity, in its short history, has shown resilience and a tenacity to grow despite an unconducive operating environment. JMFHLL offers the whole gamut of housing finance products including various kinds of home loans, loan against residential property and Micro, Small and Medium Enterprise (MSME) loans. It has strong synergies with the established real estate-focused businesses of the group and leverage its competencies - service and speed - with technology to develop a successful business model. It chose to serve the growing needs of housing finance customers in the low and middle income segments of sub-urban and rural India, going contrary to the industrys preference to serve the customers in the metro cities and urban regions of the country. The majority of our customers have limited access to formal banking credit facilities.

There has been a tremendous growth in Indias housing sector due to migration, employment opportunities, formation of nuclear family by younger generation etc. We have delivered a robust all-round performance, emerging stronger from the crisis.

In terms of operating performance as at March 31, 2023, our total retail mortgage loan book stood at 1,918 Crore as compared to 1,170 Crore as at March 31, 2022. The Gross Non- Performing Assets (GNPA) was at 1.09% as of March 31, 2023. The GNPA is below industry average GNPA despite focusing on the affordable housing segment, which reflects that the conservative credit underwriting approach as well as a robust risk framework.

We expanded our branch network from 55 to 93 during FY 2022-23.

The various product offering have evolved over a period of time based on our wide based experiences across geographies and our close association with our customers:

Home Loans

We offer home loans for ready to move in homes, home construction, home improvement, home extension, plot plus construction, balance transfer and top up loans to customers across 93 branches in India with an average loan value of 12 Lakh.


The MSME business within Retail Mortgages comprises two business segments, Loans to Education Institutions (EIL) and Loans to Small and Medium Enterprises (MSME LAP) for Business expansion purposes.

The focus of the business in EIL segment continues to be on relatively larger schools which have managed well through the Covid-19 pandemic and have seen a resurgence in terms of new admissions for the year 2022-23 which is expected to increase in the FY24 as well. Majority of the new funds are being deployed by these institutions to expand existing infrastructure and in some cases acquire struggling schools available at distress valuations. Further as a strategy, we have curtailed over ticket sizes of EIL loans in rural/semi-urban areas and to move away from purely rural affordable schools.

The small and medium business enterprises (MSME) are also seeing demand revival which is also vouched by Transunion CIBIL in their MSME Pulse Report which indicates that the MSME growth has been significant and within NBFC segment, the demand has gone to 2x when compared to two years ago. With banking system being slow in responding to the expanding working capital of business expansion capital requirements of these enterprises, there is opportunity for our business to respond to this demand for capital and be in a position to choose stronger credit profiles. As a business strategy, we would be growing this business within a ticket size range of 2-5 Crore and in metro cities, these could go to 5-10 Crore based on bankable credit of the Borrower.

JMFHLL and Indostar Capital Finance Limited have engaged in preliminary discussions to explore strategic options including potential combination and listing of the retail mortgage portfolio of the JMFHLL subject to satisfactory due diligence, execution of definitive agreements and receipt of relevant regulatory and other approvals.

Our mortgage lending segment is subject to threats which include:

• Macro-economic factors such as geopolitical tensions, global economic threats impacting the business, economic situation, liquidity situation in the market, cost effective availability of funding;

• Business specific threats such as increased intensity of competition from players across the industry creating downward pressure on yields, fees, commissions and brokerages, regulatory challenges, technology innovations, amongst others; and

• Regulatory changes and adverse sector changes including slowdown in the real estate sector and housing.

Financial performance of Mortgage Lending Segment

( in Crore)


FY 2022-23

HFY 2021-22

Gross Income



Profit before tax



Profit after tax before non-controlling interest



Profit after tax after noncontrolling interest



Segment Capital Employed



Alternative and Distressed Credit 0“ _ . ? Business

During FY23, RBI notified revised regulatory framework for ARCs towards strengthening and streamlining ARC framework for resolution of stressed assets. The guidelines inter alia, permit ARCs to invest in the SRs at a minimum of either 15 percent of transferors investment in the SRs or 2.5 percent of the total SRs issued, whichever is higher, vis-a-vis the previous requirement of 15 percent of total SRs issued in all cases. This is expected to result in efficient utilisation of capital, enabling ARCs to participate in more and bigger deals.

Moreover, ARCs with a minimum Net Owned Fund (NOF) of 1,000 Crore have been permitted to act as resolution applicants under the Insolvency and Bankruptcy Code (IBC), and we are one of the very few ARCs to meet this criteria. Lenders have also been permitted to transfer all loans in default to ARCs, as opposed to the earlier stipulation of transferring only those loans which were in default for more than 60 days. This is expected to facilitate debt aggregation as well as better reconstruction and recovery from stressed assets.

During the year, we prioritised our focus on opportunistic acquisitions from the NBFC sector. We acquired dues of 9,751 Crore which majorly included portfolio of retail assets. This has allowed us to broad base our investment portfolio and diversify risk over large number of borrowers.

Our continued efforts on the resolutions resulted in recoveries of 1,067 Crore aided by sale of assets, restructuring, settlement and IBC. Security Receipts worth 807 Crore were redeemed during the year. We successfully restructured the debt of two accounts during this period.

We have built strong expertise of around 15 years in this business. On the corporate side, we invest in overleveraged companies with strong asset/collateral base, viable business models and/or having real estate with good development potential. On the retail side, we take multiple factors into consideration, including ageing analysis, geographical spread, origination practices and past payment track records, credit bureau scores etc.,

We facilitate turnaround of our investee companies through initiatives like restructuring of debt, streamlining of operations and liquidation of non-core assets. Recoveries are aligned with the cash flows so as to ensure that our Internal Rate of Return (IRR) expectations are met.

We have a team of professionals from diverse backgrounds who are experienced in banking, corporate debt restructuring and bankruptcy. The team is also involved in financial and legal due diligence for acquisitions and resolutions. We also closely work with diverse sector-specific professionals and firms for revival of the acquired units.

Till March 31,2023, we have acquired total outstanding dues of 73,508 Crore at a gross consideration of 21,680 Crore. The outstanding Security Receipts stood at 13,558 Crore as on March 31,2023. The outstanding contribution of JM Financial Asset Reconstruction Company Limited stood at 3,862 Crore as on March 31, 2023. We have had 73 exits (trusts) spread across sectors which is a testimony of our strong expertise gained over the years in resolving distressed assets.

We witnessed delays in IBC processes which has impacted asset values and recoveries. During the year, we have made additional provisions in one large account due to expected lower than anticipated recovery in IBC process. In addition, we have taken cautious provisions on few other corporate accounts. The overall one time additional provision on Security Receipts of such corporate accounts amounts to 246 Crore in FY23.

Looking ahead, our acquisition strategy is towards full cash acquisitions with a co-investment model along with financial investors and strategic partners. Along with corporate accounts focus is also going to be on the acquisition of retail portfolios which would help to reduce concentration risk by diversifying the AUM. In the coming year, apart from focus on recoveries, we are focusing on acquisition of incremental assets based on co-investment model resulting in a healthy mix of fee based and fund based revenue model.

Real Estate Fund

The Property Fund has Assets under Management (the “AUM”) of 39 Crore as at March 31, 2023. The Property Fund continues to focus on exploring exit opportunities for its outstanding portfolio investments. During the year, the onshore scheme of the Property Fund has received consent from its investors to extend the tenure by another two years till March 4, 2025.

Our alternative and distressed credit segment is subject to threats which include:

• macro-economic factors such as abnormal monsoon, geopolitical tensions, global economic threats impacting the business, economic situation, liquidity situation in the market, cost effective availability of funding;

• business specific threats such as increased intensity of competition from players across the industry creating downward pressure on yields, fees, amongst others; and

• regulatory changes, delays and adverse sector changes affecting the acquisition and resolution of assets.

Financial performance of Alternative and Distressed Credit Segment

( in Crore)


FY 2022-23

FY 2021-22

Gross Income



Profit / (Loss) before tax



Profit / (Loss) after tax before non-controlling interest



Profit / (Loss) after tax after non-controlling interest



Adjusted Profit after tax after non-controlling interest**



Segment Capital Employed*



* Includes non-controlling interest of Security receipts holders under distressed credit business

** Adjusted for additional provision considered in Security Receipts (“SRs”) on a few accounts in FY23 (post tax and non-controlling interest) of 107.40 Crore.

Asset management, Wealth management and Securities business (Platform AWS)

Equity Brokerage Group

The Equity Brokerage Group offers research based equity advisory and trading services to high net-worth individuals, corporates and retail clients. The Equity Brokerage Group has its presence in 206 cities in India through a network of 52 branches and 744 locations. The combination of branches and franchisees has helped us in achieving a de-risked business model and a widespread presence.

We shall continue to focus on strengthening our branch and franchisee network. We have expanded our reach and visibility by opening additional branches at Kolkata, Patna, Ranchi, Burdwan, Nagpur, Ludhiana, etc., and are focusing on increasing our presence in eastern India. During FY 2022-23, 60% of its clientele volume was contributed through online trading.

We have made hires to strengthen our product and investment counselors team for in-house and third-party investment products through our broking channel.

The year on year comparative details of average daily turnover in the Cash and Derivative segments of BSE and NSE are given below:

( in Crore)

Average Daily Volume

FY 2022-23

FY 2021-22

Cash Market









(Source: SEBI, NSE, BSE)

During FY 2022-23, our average daily volume has grown to 26,831 Crore as compared to 15,453 Crore in FY 2021-22.

Digital Business Group

In early 2022, JM Financial entered into the rapidly expanding fintech industry, recognizing the incredible opportunity to deliver innovative financial solutions to the billion-plus Indian population. As a result, we are excited for our new FinTech platform which cuts across WealthTech, LendingTech and InvestmentTech domains.

> App for digital business - We have gone live with new mobile app and deployed the same in Playstore post approvals. The app is currently in Closed User Group

(CUG). We have developed customer-centric features which we believe will provide a lot of value to the users.

> Website for digital business - During the last quarter of FY 2022-23, we rolled out two key website features to enhance user experience - Search and Market- Data pages. The Search is a flagship feature that cater to users query in natural language from a simple knowledge query to a market-data query. Market-data pages on the other hand give a graphical overview of the market-data dissected in various views. Additionally, we have also equipped our CMS to handle SEO related changes on the website with continued focus to reduce developer dependency.

> New DIY on-boarding platform - We augmented our new AI-enabled In App DIY journey with 2 vernacular languages - Hindi and Gujarati and plan to add 3 more vernacular languages in the coming quarter. This new DIY platform has started to yield results. Furthermore, we are continuously developing new features to improve the offering.

> Digital Marketing - We started building knowledge- content on digital channels like YouTube, Twitter and our own website in the form of articles, videos, short-videos and info-graphic nuggets. Dissemination of this content will help us in wider reach and give a superior experience to the users.

Wealth Management

The Wealth Management Group has been divided into three (1) Elite Wealth Management Group (2) Private Wealth Management Group and (3) Retail Wealth Management Group respectively. The Wealth Management verticals cater to both 1) Millennials, clients creating new wealth, young entrepreneurs, senior executives of corporates, tech-savvy professionals; and 2) ultra and high net-worth investors, corporates, banks, and institutions. These clients are serviced through separate teams.

The ‘Elite Wealth Management division focuses on clients with net worth in the range of 50 Lakh to 10 Crore and is present in eight cities. The segment has a team of 94 as of March 31, 2023. It caters to mass affluent HNIs looking for regular income and wealth preservation, first generation entrepreneurs who are looking to create alpha over their investments, top executives in corporates, millennials on their journey to create wealth, tech savvy professionals.

Our endeavour is to be the second relationship manager to our clients next only to banks when it comes to their personal finances. The focus will be to cater to all investments and insurance-related needs, including exotic product variants across various asset classes through an open architecture model.

The segment has 1,228 Crore of assets under management (AUM)* in the full year of operation.

Private Wealth Management Group is an arm exclusively focusing on Ultra HNI, Family Offices, Corporates and Institutions. It has an open architecture with regard to products, manufacturers and ideas. It offers personalised attention and execution expertise offering an extensive bouquet of products to serve its clients requirements. The group has a strong team of wealth advisors, focused to meet client requirements by providing them unbiased investment solutions.

During FY23, the segment has mobilised ~ 16,000 Crore in various products like equity and debt mutual fund schemes, corporate fixed deposits and bonds. Private Wealth Management Group AUM* stood at 56,515 Crore as at March 31, 2023.

During the year, a Scheme of Arrangement was filed with the National Company Law Tribunal (NCLT) for demerger of the undertaking (the “Scheme”) comprising of Private Wealth and Portfolio Management Services (the “PMS”) along with the investment in JM Financial Institutional Securities Limited (which houses the institutional equities business) from its wholly owned subsidiary, JM Financial Services Limited to JM Financial Limited. The Scheme also comprises merger of JM Financial Capital Limited, which is a wholly owned subsidiary of JM Financial Services Limited, into JM Financial Services Limited. The Company has received the NCLT order approving the Scheme on April 20, 2023. Once the order for the Scheme is filed with the appropriate authorities, the Scheme shall become effective and accordingly Private Wealth will form a part of the integrated Investment Bank.

Retail Wealth Group has a network of over 9,000 active Independent Financial Distributors (IFDs) who distributes various financial products such as Mutual Funds, SIPs, Fixed Deposits, IPOs, Bonds to retail and high net worth customers across the country. During the FY 2022-23, we have registered more than 38,000 SIPs and taking the total count of SIPs to more than 1 Lakh and have mobilised over 2,400 Crore in various Equity and Debt Mutual Fund schemes and more than 6,600 Crore in various corporate Fixed Deposits and Bonds. During FY 2022-23, we have procured more than 25 Lakh applications in IPO. Retail Wealth Management Group AUM*

stood at 23,828 Crore as at March 31, 2023. The segment added new partners with majority of them being qualified professionals like CAs and senior Bankers.

During FY 2022-23, the segment strengthened its digital presence with substantial growth in online accounts for paperless transactions in mutual funds, fixed deposits and public issues. ~90% of the SIPs are done digitally. The segment took initiative of digitalizing the entire process of IFD empanelment which has changed the experience of on- boarding of our prospective IFDs.

During this financial year, the IPO bidding process was digitised, which helped to activate many small IFDs who had given up IPO marketing post UPI becoming mandatory.

*Assets under Management (AUM) comprises distribution assets and advisory assets, as applicable

Portfolio Management Services

FY 2022-23 was an eventful financial year for our PMS business. We grew our AUMs to 1,094 Crore as at March 31, 2023. As of March 2023, the NDPMS portfolio reported 15.6% alpha for new AUM. With a CAGR of 14.4% since inception, the flagship scheme FOCUS has reported a strong 2.5% Alpha. The DPMS portfolio IRP III reported strong 3-year relative outperformance of 10.8% CAGR and reported positive alpha since inception. Over 95% of total discretionary AUM has reported positive alpha since inception. On the manpower front, the PMS team size stood at 30 as at March 31, 2023 from 18 as at March 31, 2022. During the year, a Scheme of Arrangement was filed with the National Company Law Tribunal (NCLT) for demerger of the undertaking (the “Scheme”) comprising of Private Wealth and Portfolio Management Services (the “PMS”) along with the investment in JM Financial Institutional Securities Limited (which houses the institutional equities business) from its wholly owned subsidiary, JM Financial Services Limited to JM Financial Limited. The Scheme also comprises merger of JM Financial Capital Limited, which is a wholly owned subsidiary of JM Financial Services Limited, into JM Financial Services Limited. The Company has received the NCLT order approving the Scheme on April 20, 2023. Once the order for the Scheme is filed with the appropriate authorities, the Scheme shall become effective and accordingly Portfolio Management Services (PMS) will form a part of the integrated Investment Bank.

Asset Management

Our first initiative has been to strengthen our existing teams with experienced professionals from the industry. We have on-boarded senior key hires as Department-Heads for

Digital, Strategic Alliance, Product, Marketing, Risk, Fund Management, Tech initiative, and Operations. Along with the leadership team, key roles have been filled across various verticals, making the larger part of hiring completed. This gives renewed impetus to build on our business in the coming financial year.

We now have an experienced investment team comprising experienced and competent Fund Managers in both Equity and Fixed Income, who have delivered across market cycles. They are ably assisted by a team of equity research, credit research, and macro-economic analysts. Our investment design is process-led, enabling us to focus on consistency and provide risk-adjusted returns across all cycles.

We also have a strong sales and product team with senior professionals from the industry joining us at all levels.

Our presence has expanded, and we now have representation across 13 major locations, including the recent additions of Lucknow and Baroda in FY 2022-23. All branches are fully equipped to handle the business growth and momentum, which has led to an increase in our partners/distributors count to over 18,000.

Moving on to our business developments, we have concluded our NFOs for the JM Short Duration Fund in July-August 2022 and JM Midcap Fund in November 2022. The Midcap NFO has helped us to add folios through unique PIN codes. With the addition of two NFOs, we now offer 14 mutual fund schemes to our 1.44 Lakh folios across asset classes of Equity, Fixed Income, and Hybrid. The SIP book has tripled in size, and the count has almost doubled during this financial year. Additionally, there has been an overall increase of folios covering 18 cities. We have repositioned one of our schemes from JM Core11 Fund to JM Focused Fund.

On the market engagement side, we have launched various engagement platforms like Nazariya, where our fund management team gives their opinions and views on various aspects of the market through physical and digital platforms. Additionally, for distributor engagement with a personal touch, we have an initiative named “Rubaru,” where the AMCs senior management team meets up with our distributors to give a broader perspective about our Group, Mutual Fund, markets, etc.

We have also taken multiple initiatives to create better visibility and mind share through upgraded factsheets, market updates, fund insights, product decks, webinars, and much more being

circulated to enable our partners to better understand our teams, our products, and our market views.

We have successfully established strategic alliance with 1012 key players who have expressed interest in our products. Our partner activation has resulted in a remarkable 6-fold increase. Furthermore, we have intensified our focus on engagement within our group.

To improve our service delivery and strengthen our relationships with our partners and investors, we have undertaken several digital initiatives. This includes the implementation of Partner Online Empanelment, Distributor Interactive Transaction (DIT) portals for individual MFDs, and an investor portal that streamlines the entire online transaction process. In addition, we have been actively engaging with RIAs online and digital ARNs and are available on various industry-level transaction platforms.

Our digital eco-system now has 50 partners whom we engage with through webinars, emails and WhatsApp communication. We prioritise active engagement and communication with our partners and clients and have been successful in gaining over 5,000 followers on our LinkedIn handle. In the near future, we plan to expand our online presence by making our debut on Instagram and YouTube.

Over the past year, we have increased our presence across various media platforms to raise awareness of our brand.

Overall, the closing AUM has increased from 2,547 Crore for FY 2021-22 to 2,962 Crore for FY 2022-23 i.e. an increase of around 16%. The AAUM has increased from 2,139 Crore for FY 2021-22 to 3,079 Crores for FY 2022-23 i.e. an increase of around 44%. Our Equity AUM increased from 575 Crore for FY 2021 -22 to 789 Crore for FY 2022-23 i.e. an increase of 37%.

Our Platform AWS segment is subject to threats which include:

• macro-economic factors such as abnormal monsoon, geopolitical tensions, global economic threats impacting the business, economic situation, liquidity situation in the market; and

• business specific threats such as increased competition affecting market share and fees, higher commissions to distributors, regulatory changes, threats from exchange traded funds, and passive funds and redemption pressures.

Financial performance of Platform AWS Segment

( in Crore)


FY 2022-23

HFY 2021-22

Gross Income



Profit before tax (adjusted for investments in digital and asset management business)



Profit before tax



Profit / (Loss) after tax before non-controlling interest



Profit after tax after noncontrolling interest



Segment Capital Employed



Analysis of Financial Performance^^^^

Consolidated Financial Performance

The consolidated gross income of the Company stood at 3,343.07 Crore as against 3,763.28 Crore in the previous year, registering a decline of 11.17%. Profit before depreciation and amortisation expense, finance cost and tax expense during the year stood at 2,172.99 Crore as against 2,467.55 Crore in the previous year. Pre-Provision Operating Profit during the year stood at 1,048.17 Crore as against 1,696.40 Crore in the previous year, thereby registering a decline of 38.21%. The Profit before and after tax stood at 952.61 Crore and 597.29 Crore respectively as against 1,348.04 Crore and 773.16 Crore in the previous year. The profit in the current year declined by 22.75% to 597.29 Crore from 773.16 Crore in the previous year primarily due to significant decline in the performance of Alternative and distressed credit and Platform AWS segment during the year.

During the current year, adjusted profit before tax stood at 1,198.87 Crore as against 1,348.04 Crore, thereby registering a decline of 11.07%. Adjusted profit after tax* stood at 704.69 Crore as against 773.16 Crore registering a decline of 8.86%.

*During FY23, the Company has considered the impact of 246.26 Crore on account of additional provision considered in Security Receipts (“SRs”) on a few accounts in our distressed credit business. Adjusted net profit after tax and after non-controlling interest is prior to adjusting the loss of 107.40 Crore.

The following table describes consolidated income during the year:

( in Crore)


For the Year ended

March 31, 2023

March 31, 2022

Interest Income



Fees and Commission Income



Brokerage Income



Net gain on fair value changes



Net gain on derecognition of financial instruments carried at amortised cost



Other Operating Income



Other Income






Interest Income

Interest Income from lending activities continued to be a major contributor to the gross revenue at 1,935.30 Crore as against 1,850.71 Crore during the previous year, constituting around 57.89% of the total revenue. Increase in interest income is on account of increase in average loan book during the year. The increase was partially offset by significant decline in interest income on account of IPO financing during the year as compared to previous year.

Fees and Commission Income

Fees and commission earned during the year were 657.48 Crore as against 816.96 Crore during the previous year, constituting 19.67% of the total revenue. The decline is primarily on account of decline in fee income on account of decrease in deal closures in investment banking and on account of decline in fees from IPO financing during the year.

Brokerage Income

Brokerage income earned during the year was 314.03 Crore as against 330.54 Crore during the previous year, constituting around 9.39% of the total revenue. The decline in brokerage income is on account of decline in average daily turnover under cash segment during the year.

Net gain on fair value changes

Net gain on fair value changes stood at 183.42 Crore as against 588.59 Crore during the previous year, constituting around 5.49% of the total revenue. This includes primarily realised gains on de-recognition as well as mark-to-market changes on account of fair value of investments in equity

shares, bonds, mutual funds, security receipts and financial assets under distressed credit business during the year. The decline is primarily on account of decline in realised gains on de-recognition, fair value losses on investments in security receipts and reduced fair value gains on investment in equity instruments during the year.

Net gain on de-recognition of financial instruments carried at amortised cost

Net gain on de-recognition of financial assets carried at amortised cost were 0.10 Crore as against 0.05 Crore during the previous year. This is primarily due to profit on de-recognition of a loan or a borrowing, which were carried at amortised cost during the year.

Other operating income and other income comprising revenue from treasury operations and other activities were 252.74 Crore as against 176.43 Crore during the previous year, constituting around 7.56% of the total revenue.

The following table describes consolidated expenditure during the year:

( in Crore)


For the Year ended

March 31, 2023

March 31, 2022

Finance costs



Impairment on Financial Instruments



Employee Benefits Expense



Depreciation and amortisation expense



Other expenses






Finance Cost

The increase in finance cost from 1,081.73 Crore in the previous year to 1,178.51 Crore in the current year is on account of increase in average borrowings during the year. The same was partially offset by reduction in annual average borrowing rate.

Impairment on Financial Instruments

Impairment on Financial Instruments stood at 95.56 Crore as against 348.36 Crore during the previous year. This is on account of provisioning based on expected credit loss model on the loans, investments and trade receivables. The decline is primarily on account of reversal of provisioning on account of reduction in Stage 2 and Stage 3 assets as compared to previous year.

Employee Benefits Expense

The increase in employee cost by about 13.61% is mainly on account of increase in the head count and fixed compensation of the employees in the current year as compared to previous year.

Depreciation and Amortisation Expenses

The increase in depreciation and amortisation expenses by about 10.83% is on account of higher capital expenditure.

Other Expenses

Other expenses comprise sub-brokerage, fees and commission and administrative costs. The sub-brokerage, fees and commission mainly relates to secondary market and distribution business. These expenses declined by 2.18% in the current year because of corresponding decline in brokerage and fee income in the current year. Administrative costs mainly comprise establishment expenses. These expenses increased by 31.86% primarily attributable to increase in legal and professional fees, information technology expenses, advertisement expenses and travelling and conveyance expenses.

The break-up on a consolidated basis under key segments is as under:

( In Crore)

FY 2022-23

^:FY 2021-22

Amount! %

o to total


% to total

Segment Revenue

Investment Bank (IB)





Mortgage Lending





Alternative & Distressed Credit





Asset Management, Wealth Management & Securities Business (Platform AWS)










Total Segmental






Less:- Inter segmental






Total revenue





Segment Results (Profit Before Tax)

Investment Bank (IB)





Mortgage Lending





Alternative & Distressed Credit*





Asset Management, Wealth Management & Securities Business (Platform AWS)










Adjusted Profit before tax*





( In Crore)

FY 2022-23

FY 2021-22

A to total


% to total

Additional provision on Security Receipts*





Total Results (Profit before tax)





Segment profit after tax (after non-controlling interest)

Investment Bank (IB)





Mortgage Lending





Alternative & Distressed Credit*





Asset Management, Wealth Management & Securities Business (Platform AWS)










Adjusted Segment profit after tax (after non-controlling interest)*





Additional provision on Security Receipts*





Total Segment profit after tax (after noncontrolling interest)





* before considering the impact of 246.26 Crore on account of additional provision considered in Security Receipts (“SRs”) on a few accounts in FY23. Net Profit after tax and after non-controlling interest is prior to adjusting a loss of 107.40 Crore.

( In Crore)

1, 2023

March 31, 2022


% to total


% to total

Segment Capital Employed

Investment Bank (IB)





Mortgage Lending





Alternative & Distressed Credit





Asset Management, Wealth Management & Securities Business (Platform AWS)










Total Capital Employed





Investment Bank (IB):

The Investment bank business registered revenue of 1,232.21 Crore as against 1,272.56 Crore in the previous year. During the year, the percentage of segment results to segment capital employed was 18.73% as against 18.92% in the previous year. This segment contributed 64.85% to our consolidated profit after tax.

Mortgage Lending:

This segment registered revenue of 1,318.49 Crore as against 1,191.04 Crore in the previous year. Percentage of segment results to segment capital employed in this segment was 10.76% as against 9.46% in the previous year. This segment contributed 27.04% to our consolidated profit after tax.

Alternative & Distressed Credit:

This segment registered revenue of 137.13 Crore as against 522.09 Crore in the previous year. Percentage of segment results to segment capital employed in this segment was (9.49%) as against 12.73% in the previous year. The contribution of this segment was (12.29%) to our consolidated profit after tax.

During FY23, this segment has accounted for an additional provision in Security Receipts (“SRs”) on a few accounts to the tune of 246.26 Crore (Post tax impact of 184.28 Crore). Net Profit of the segment after tax and after non-controlling interest has been lower by 107.40 Crore.

Asset Management, Wealth Management & Securities Business (Platform AWS):

This segment registered revenue of 627.78 Crore as against 662.27 Crore in the previous year. During the year, the percentage of segment results to segment capital employed in the segment was 0.86% as against 16.74% in the previous year. This segment contributed 1.47% to our consolidated profit after tax.

Standalone Financial Performance:

On a standalone basis, gross income was lower at 488.56 Crore for the year ended March 31, 2023 as against 619.63 Crore in the previous year, registering a decline of 21.15%. The profit before tax was lower at 313.29 Crore as against 415.90 Crore in the previous year, registering a decline of 24.67%, and the profit after tax was lower at 273.07 Crore as against 327.78 Crore in the previous year, registering a decline of 16.69%. The profit in the current year declined primarily on account of decline in fee income from 349.01 Crore in the previous year to 193.99 Crore in the current year due to decline in deal closures in investment banking. Profit on sale of investment in subsidiary which stood at 30.02 Crore in the previous year is nil for the year ended March 31, 2023. The said decrease was partially off-set by increase in dividend income from subsidiaries which stood at 140.22 Crore for the year ended March 31, 2023 as compared to 46.14 Crore in the previous year.

Key Financial Ratios:



FY 2022-23

FY 2021-22

FY 2022-23

FY 2021-22

Interest Coverage Ratio





Current Ratio





Debt Equity Ratio





Net Debt Equity Ratio





Cost to Net Total Income Ratio





Net Profit Margin





Return on Equity (ROE)





Return on Assets (ROA)





Ratios where there has been significant change (i.e. change of 25% or more as compared to the immediately previous financial year) from FY 2021-22 to FY 2022-23:

ROE and ROA:

On a consolidated basis, the ROE and ROA for the year ended March 31, 2023 were 7.56% and 2.69% as against 10.58% and 4.24% for the year ended March 31, 2022. The decline is primarily on account of decline in profitability during the year. The profit after tax pre and post non-controlling interests stood at 708.99 Crore and 597.29 Crore respectively as against 992.39 Crore and 773.16 Crore respectively in the previous year.

Net Debt Equity Ratio:

On a consolidated basis, the net debt equity ratio as at March 31, 2023 stood at 1.25 as against 0.94 as at March 31, 2022. The increase is on account of increase in gross debt coupled with decrease in cash and cash equivalents during the year. (Refer Note 49 of the Notes to the Consolidated Financial Statements)

Cost to Net Total Income Ratio:

On a consolidated basis, the Cost to Net Total Income Ratio for the year ended March 31, 2023 was 46.25% as against 31.10% for the year ended March 31,2022. The increase is on account of decline in net total income coupled with increase in employee benefit expense and other operating expense during the year.

Current Ratio:

On a standalone basis, the Current Ratio as at March 31,2023 was 19.31 as against 15.09 as at March 31,2022. The increase in ratio is primarily on account of decline in current liabilities outstanding as at March 31, 2023.

AA 1

Resource Mobilisation


NBFCs make a significant impact on the socioeconomic structure of Indian economy and the potential for credit penetration in India is still relatively high. NBFCs are well poised to cater to all segments of the pyramids from wholesale to retail borrowers.

The year started with armed conflict in Russia - Ukraine region and its impact on commodity and energy prices leading to a global impact on inflation. The urgency of the policy action was visible across the central banks in order to counter high inflation, leading to the start of hiking cycle. Our market too, saw successive hikes in repo rates and measures to absorb excess liquidity infused during the pandemic.

Below table portrays the rate hike movements during the FY 2022-23:

Period / Instruments

April 2022

March 2023

Change in BPS

Repo Rate



250 bps

Effective rate hike (incl. of change in LAF corridor)

290 bps

Weighted Average Call Rate (WACR)



312 bps

Certificate of Deposits - CD (3 Months)



305 bps

Commercial Paper - CP (3 Months)



325 bps

Government Security (1 Year)



240 bps

Bonds - AAA (1 Year)



285 bps

SBI - 1 year MCLR



150 bps

The Group continued its focus on ALM and maintaining appropriate cash liquidity on its balance sheet. The consolidated debt outstanding at the financial year ended March 31,2023 stood at 15,875 Crore versus 13,458 Crore a year earlier (an increase of approximately 2,417 Crore). During the year, the Group continued the efforts of diversifying the sources and maturities for the borrowing profile at the consolidated level. The long-term borrowing stood at 13,092 Crore versus 9,952 Crore a year earlier. The Groups long term: short term ratio stood at 82:18. The Groups shortterm borrowing as at March 31, 2023 stood at 2,783 Crore compared to 3,506 Crore as at the previous year end. As at March 31, 2023, the liquidity in the Group stood at 2,207 Crore. During the financial year ended March 31, 2023, the Group raised 5,387 Crore as long term borrowings from banks, insurance and mutual funds. Respective companies in the Group have focused on maintaining righteous ALM, elongating maturities, optimising interest cost and maintaining necessary liquidity buffers.

The Group continues to explore variety of new avenues of financing to further diversify its borrowing profile.


• The credit rating agency included in their surveillance parameter severe stress test models and increased

their surveillance during the year to measure the unprecedented and unimagined impact of the pandemic.

• The credit rating agencies have continued with their long term rating and outlook on all companies within the group as per the table below.

• The credit rating agencies have continued with their highest short-term rating of A1+ on all companies within the group.






JM Financial Limited

AA / Stable

AA / Stable


JM Financial Products Limited

AA / Stable

AA / Stable


JM Financial Credit Solutions Limited

AA / Stable


AA / Stable

JM Financial Home Loans Limited

AA / Stable

AA / Stable


JM Financial Services Limited

AA / Stable








JM Financial Institutional Securities Limited

AA / Stable -

JM Financial Capital Limited

AA / Stable -


JM Financial Properties and Holdings Limited

AA / Stable -

JM Financial Asset Reconstruction Company Limited

AA- / Stable AA- / Stable

Risk Management

Risk is an integral part of the business and almost every business decision requires the management to balance risk and reward. The ability to manage risks across geographies, products, asset classes, customer segments and functional departments is of paramount importance for the hindrance free growth of every organisation.

Due to increasing globalisation, integration of world markets, newer and more complex products & transactions and an increasingly stringent regulatory framework, the financial services industry is subject to continuously evolving legislative and regulatory environment.

Presence of JM Financial Group in several businesses, asset classes and geographies, exposes it to various risks. The risk also emanates from various businesses of operating entities within the Group.

At JM Financial, risk management forms an integral part of the business operations and monitoring activities. The risk is managed through risk management framework approved by the Board of Directors, encompassing independent identification, measurement and management of risk across various businesses of the Group. The Company has formulated comprehensive risk management policies and processes to identify, evaluate, manage and mitigate the risks that are encountered during conduct of business activities in an effective manner. We have established a system of risk management and internal controls consisting of an organisational risk management framework, policies, risk management system tools and procedures that we consider to be appropriate for our business operations.

The Group is exposed to a variety of risks, including liquidity risk, interest rate risk, market credit risk, operational risk, regulatory and compliance risk, reputation risk, business continuity risk, legal risk, competition risk and risks pertaining Cyber Security.

Risk exposure is monitored and controlled through a variety of separate but complementary financial, credit, operational, compliance and legal reporting systems. A team of experienced and competent professionals, at business level as well as group level, identify and monitor these risks on an on-going basis and evolve processes/systems to monitor and control the same to keep the risks to minimum levels. Ongoing monitoring by our officials helps in identifying the risks at an early stage. There is a continuous focus on the maker- checker processes. Detailed regulatory as well as regular inspections also help test our processes and compliances.

The Risk Management Committee of the Board was formulated in compliance with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Further, the Committee has adopted the Risk Management Policy

which ensures that risks is overseen and monitored at all the levels. The Committee oversees the risk management policy including functions relating to cyber security, assess the risks, decide the measures to mitigate the risks. The Board reviews the effectiveness of risk management systems in place and ensures that the risks are effectively managed. The Audit Committee has additional oversight in the area of financial risks and controls.

A risk event update report is periodically placed before the Risk Management Committee which includes, inter alia, the risk identification, risk classification, assessment of impact, risk mitigation/remedial action, risk status amongst others. The Committee reviews these reports along with the course of action taken or to be taken to manage and mitigate the risks. Additionally, independent Internal Audit firms have been appointed to review and report on the business processes and policies for all operating companies in the Group. The report of internal auditors on set processes is reviewed and discussed by the Audit Committee of the Company and respective operating companies.

Various risks associated with the businesses of JM Financial Group are discussed in detail below:

Key Risk

Description/Impact of Risk

Risk Mitigation

Credit Risk

The risk associated with the failure of the borrower to meet financial obligations to the lender in accordance with the agreed terms is known as Credit Risk. If any of our borrowers fail to discharge their obligations to us, it would result in financial loss.

A comprehensive review exercise is conducted for credit approvals, ensuring proper documentation, carrying out extensive credit appraisal, conducting periodic reviews etc., is done as a part of credit risk mitigation. Exposure limits are sanctioned to counterparties based on their credit worthiness

We are in the business of lending against mortgages and providing securities backed loans. Any material unexpected credit losses or failure of the borrowers to repay debt on time, may have an adverse and negative effect on our business.

Credit risk monitoring mechanism ensures that exposure to clients is diversified and remains within stipulated limits. Careful selection of quality and quantum of collateral is key for a client limit. Effective credit risk management has enabled us to steer through the current environmental stress conditions without any major impact.

Various norms for customer identification and evaluation procedure for prospective credit proposals have been stipulated as a part of risk mitigation.

Regular portfolio risk analysis is done on various financial and policy parameters, for making required changes in the credit policy as a proactive approach to risk management.

Key Risk

Description/Impact of Risk

Risk Mitigation

Market Risk

Market risk is the risk arising from the adverse movements in market price of various securities, which may impact value of portfolio of investment in securities. The risk may pertain to interest bearing securities (interest rate risk), equities (equity price risk) and foreign exchange rate risk (currency risk).

As a part of it operations, the Group makes investments in securities and other financial instruments from time to time.

In order to monitor market risk, a comprehensive set of reports and limits has been put in place that track positions and various risk parameters. The risk framework ensures that the risks are monitored and necessary timely action is taken for every single instance of breach, in case they occur. Our portfolios and collaterals/ securities are continuously monitored and also the usage of derivative instruments which minimises the impact of market risk.

We are exposed to potential changes in the value of financial instruments held by us caused by above factors. Any decline in the price of investments in quoted securities may affect our financial performance and position.



Liquidity risk is the risk arising due to unavailability of adequate funds at appropriate prices or tenure. It also refers to the risk that arises from the difficulty of selling an asset without a high impact cost.

We maintain sufficient liquidity cushion to meet our borrowing obligation and borrower side funding requirement. We have a strong financial position and all our businesses are adequately capitalised, have good credit rating and appropriate credit lines available to address liquidity risks. We also maintain a part of our capital in liquid assets to manage any sudden liquidity needs. Additionally, the asset liability mismatch and collateral margins are regularly assessed. Liquidity requirements are closely monitored and necessary care is taken to maintain sufficient liquidity cushion for maturing liabilities and for any unforeseen requirements. We also ensure diversification in source of borrowing to reduce dependence on a single source. We also proactively modify our liabilities profile in sync with the changing assets profile to ensure that we do not carry any material asset liability mismatch.

Our liquidity is mainly dependent upon our timely access to, and costs associated with raising funds. Any lack of liquidity in the market could adversely affect our ability to access funds at competitive rates. Our liquidity shall be affected due to severe liquidity crunch in the market or due to market disruptions where we cannot access public funds. Our clients may, due to certain circumstances not honour their commitments which would indirectly lead to our inability to meet the obligations.



Operational risks can result from a variety of factors, including failure to obtain proper internal authorisations, improperly documented transactions, failure of operational and information security procedures, computer systems, software or equipment, fraud, inadequate training and employee errors.

Well defined policies, operational processes and systems have been devised for our operations. Regular audits are done by internal auditors to monitor the adherence of policies and processes. We also get our systems audited periodically by competent external audit firms.

A maker/checker mechanism has been put in place to ensure compliance with laid down systems and procedures in all areas of functioning.

Our businesses are dependent on people and processes. Shortcomings or failure in internal processes or systems may have material adverse impact on the financial position as well as affect its operation.

Also, the key management team consists of professionals with high level of commitment and the team is well versed in the key issues relevant to the holding company structure. They have a good understanding of all the groups businesses helping the group companies to grow in a compliant manner.


Key Risk

Description/Impact of Risk

Risk Mitigation



Reputation Risk is the current or prospective risk to business, earnings and capital arising from adverse perception of the organisation on the part of customers, counterparties, shareholders, investors or regulators.

We conduct our business with diligence keeping in mind the stakeholders and their needs.

Adequate training is provided to employees to conduct their activities with utmost care and diligence keeping in mind the first class reputation and status enjoyed by the Company.

Reputation risk is a very high risk and can cause long term and sometime irreparable loss of business/ revenue.





Most of our businesses as well as the Company itself operate in strongly regulated business segments.

We have a team of experienced professionals which takes care of compliance with applicable laws, rules, regulations and guidelines affecting our businesses.

The risk arising out of a change in laws and regulation governing our business. It could also arise on account of inadequate addressal of regulatory requirements or differences in interpretation of regulations vis-avis the regulators. This risk is heightened in setting up global offices as familiarisation with global regulations and practices can take time as well as lead to risk of inadequate understanding.

We also take external advice and appoint well qualified professionals in respective functions in various offices. All the new guidelines, circulars, notifications are complied with. Formulation of the policies as well as its implementation is taken due care of.

Internal audit is carried out by external professional firms to monitor compliance with best practices, approved policies and applicable regulations.

In recent times, these risks have spread to tax laws and unexpected demands being raised by various tax authorities.

Our business team is strongly supported by our Corporate Functions team to quickly calibrate our actions in event of change in regulatory environment.

New laws or regulations or changes in the enforcement of existing laws and regulations may adversely affect the business/revenue/profits.

Non-compliance with regulations may invite strictures, penalties and even punitive action from the Regulators.



The industry in which the Company operates is growing at a rapid pace and is exposed to tremendous competition at the national as well as international level. Strong growth prospects combined with liberalisation of financial services sector have prompted the entry of newer foreign and domestic financial services companies.

Diversified and innovative product and services are offered to keep the customers and other stakeholders intact as well as continuous research and development helps in mitigating the competition risk.

Fair and transparent practices help the entity gain competitive advantage over other entities.

We operate in a highly competitive market and face significant competition from other players in the financial services industry and from companies seeking to attract our customers financial assets. Entry of new players has increased the competition faced by us. It may also lead to attrition of our key personnel.

Our human resource policies and a healthy positive work environment help us attract and retain best talent on a continuous basis.

Key Risk

Description/Impact of Risk

Risk Mitigation




In the event of disruption in the conduct of business due to incidents like fire, natural calamity, breakdown of infrastructure, acts of terrorism etc., we are exposed to the risk of loss of data, clients and/or business that can adversely affect our financial results.

We have in place Business Continuity Plan (“BCP”) to mitigate the impact of any such exigencies. We continuously test check the processes laid out under the BCP and review the same. The records with respect to confidential data are preserved and are secured.




Cyber risks include risks which could emanate from the failure or compromise of cyber resources / information technology. Cyber threats include phishing attacks, malware attacks, ransomware attacks etc. and can result in to loss of data, control over information systems and could result into adverse impact on the operations.

We have adopted measures to mitigate the cyber security risks including through appropriate firewalls, providing regular advisories, providing training to users, review of the information technology assets.

Internal Control Systems and their Adequacy

We have adequate internal control systems to commensurate with the nature of business and size of operations for ensuring:

• orderly and efficient conduct of business,

• adherence to the Groups policies and procedures,

• safeguarding of all our assets against loss from unauthorised use or disposal,

• prevention and detection of frauds and errors,

• accuracy and completeness of accounting records,

• timely preparation of reliable financial information; and

• compliance with applicable laws and regulations.

Policies, guidelines and procedures are in place to ensure that all transactions are authorised, recorded and reported correctly as well as provide for adequate checks and balances.

Adherence to these processes is ensured through frequent internal audits. The internal control system is supplemented by an extensive program of internal audit and reviews by the senior management. We have appointed independent internal audit firms for the Company and all our operating subsidiary companies to assess and improve the effectiveness of risk management, control, operations and processes. To ensure independence, the internal audit function has a reporting line to the Audit Committee of the Board.

Internal audit

Internal Auditors follow Standards on Internal Audit along with guidelines issued by regulators from time to time. The Internal Audit function operates under the supervision of the Audit Committee of the Board. With a view to strengthen the internal audit across the group, we have appointed the head of risk based internal audit and shall be supported by an internal team. The Group also appoints external professionals who provide an independent view and assurance by assessing the adequacy and effectiveness of internal controls, compliance to internal and external guidelines, and risk management practices across the group companies.

Internal audits are conducted periodically to ensure that the assigned responsibilities are carried out effectively.

The senior management regularly reviews the findings and recommendations of the internal auditors so as to continuously monitor and improve internal controls to match the organisations pace of growth and increasing complexity of operations as well as to meet the changes in statutory and accounting requirements.

The Audit Committee of the Board of the respective companies reviews the performance of the audit and the adequacy of internal control systems and compliance with regulatory guidelines. Significant deviations are brought to the notice of the Audit Committee of the respective companies and corrective measures are recommended for implementation. The Audit Committee provides necessary oversight and directions to the internal audit function and periodically reviews the findings and ensures corrective measures are taken. They also recommend improving the efficacy of the existing internal audit and internal control systems. This system enables us to achieve efficiency and effectiveness of operations, reliability and completeness of financial and management information and compliance with applicable laws and regulations.


The Company as part of the JM Financial group scaled new heights in its efforts to catalyse transformation in the areas of health, education, sports, agriculture and women empowerment.

The Groups CSR arm - JM Financial Foundation (JMFF), set up in 2001, invested itself intensively in some of the most deprived communities in an increased number of villages in the Aspirational District of Jamui in Bihar and in the tribal district of Palghar in Maharashtra. These interventions progressed concurrently with our extensive impact on the education of children, beyond the boundaries of the said two states.

Our CSR initiatives, budgets and expenditures are administered by JM Financial Foundation as outlined in the

CSR Policy, adopted by JM Financial Limited and all other JM Financial Group entities.

In conformity with our CSR Policy and considering the applicable provisions of the Companies Act, 2013 and the amendments made thereafter, the CSR Committees of the JM Financial group entities have approved and allocated a total amount of 27.94 Crore in the Financial Year 2022-23, of which JM Financial Limited has approved and allocated an amount of 3.54 Crore. The amount has been allocated towards the CSR project - Shri Vardhman Nidan Seva, during the year.

The subsequent sections highlight CSR inputs and progression in the interventions undertaken, addressing each focus area, by the Company, along with those supported by the other Group entities, as per their respective Annual Action Plans.

Shri Vardhman Nidan Seva

(multi-year project supported under Annual Action Plan 2022-23)

Shri Vardhman Nidan Seva, implemented through two Mobile Health Units (MHUs), is a glimmer of hope for communities residing in 30 villages and hamlets of tribal, insurgency affected Khaira, and Sikandra blocks in Jamui, Bihar. Each of these villages are served through preventive and curative, doorstep healthcare services, owing to their socio-economic deprivation, non-accessibility to timely healthcare and the poor state of health-seeking behavior. The MHU team comprises two doctors, two nurses, two health workers, two drivers, two project managers and an MIS Executive - all of whom are supported at the grassroots by 28 village-based Community Resource Persons. With a pre-designed weekly schedule, equipped with primary diagnostic tests, the MHUs consult and treat OPD patients daily (six days a week) and disseminate health education monthly. During the year, the two MHUs have conducted 24,223 OPD consultations for general, orthopedic, respiratory, gynecological, neurological and cardiovascular ailments, among others. The village communities have been educated periodically on preventive healthcare concerning anemia, diabetes, home-based newborn care, menstruation, malaria and typhoid, as per their health needs.

The project has also identified and undertaken special-focus interventions on health concerns visible in the region, but unreported, undiagnosed and untreated owing to lack of awareness, specialised and timely care along with the social stigma that accompanies disease symptoms that arent known to the majority. Given the prevalence of malnutrition in children and extremely poor health in young/under-age, expecting mothers, the project has introduced Poshan (nutrition) kits, that are provided to the identified pregnant women. Each time a pregnant woman visiting the MHU OPD is diagnosed to be anemic, she is provided with a kit comprising locally sourced sattu (roasted gram flour), moong dal (green gram beans) and soybean to fulfill her nutritional requirement. The efforts are strengthened with calcium and Iron-Folic Acid (IFA) tablets as a supplement. Ultimately, the antenatal care is monitored periodically, using mother and child healthcare indicators.

Other special-focus interventions include -

• Screening and treating children (aged 6 to 59 months) for Severe Acute Malnutrition, Moderate Acute Malnutrition

¦ Reena Murmu (name changed to protect identity) (31 years*/ n female) resident of Khaira Block, Jamui, is a mother to four home-birthed children. Her husband is a marginal farmer. $ Reena was registered with the MHU during the second j trimester in her fourth pregnancy. During her antenatal ft check-up with the MHU, she was diagnosed with severe : anaemia, which could have caused high-risk delivery, \ detrimental to the health of both - mother and child.

Our timely support rendered by way of monthly POSHAN ; kits, along with nutritional supplements and monitoring, ensured a healthy delivery of her baby weighing 2.5 kg.

* as reported by the patient

and high-risk for malnutrition. Those found to be critical, are facilitated for treatment under district Nutrition Rehabilitation Centre (NRC) ~ 522 children screened this year

• Screening and identifying patients from the MHU clinic villages for tuberculosis, epilepsy and and facilitating their treatment under experts ~ 68 patients this year

Maitri Karuna Netralaya

(multi-year project supported under Annual Action Plan 2022-23)

JMFF has been organizing annual eye-camps in some of the most remote villages of Jamui district, Bihar, since 2018. Till 2022, the Foundation had screened 2,512 patients for visual impairment, primarily including cataract, refraction, glaucoma infections among others. These camps were followed by facilitating cataract surgeries, spectacles and some referral services. However, our reach was limited, owing to lack of eyecare facilities accessible to the community in the region. Given this evident need, we committed ourselves to set up a hospital in Jamui, that would ensure providing timely eye-care services, to diagnose and treat preventable blindness, and cure patients to the last mile.

Maitri Karuna Netralaya - our eyecare facility in Gidhaur block of Jamui district, Bihar, opened its doors to OPD patients on January 23, 2023 after close to 10 months of reconstruction and renovation work spanning an area of 9,423.54 sq. ft. The new Netralaya has four wings containing two Operation

Theatres, OPD and pharmacy facilities and 10 beds, among other clinical and surgical facilities. A total of 32 clinical and non-clinical personnel inclusive of two ophthalmology surgeons, form the exclusive team of the Netralaya.

Per our annual practice, JMFF scheduled eye-camps in January 2023, in the most distant villages of tribal Khaira block in Jamui, with the comfort of taking screened patients

to our own Netralaya. The camps screened 1,172 patient: from across the block. These formed the first set of Netralay; patients. From January 23, 2023 to March 31, 2023, th< Netralaya has consulted 2,306 OPDs for vision ailments suc as cataract, refraction and pterygium, among others. Notably the Netralaya has successfully conducted 106 catarac surgeries (majorly with Phacoemulsification technology) an restored the patients eyesight, in a period of 36 days up t March 31, 2023.

Project Bachpan

(multi-year project supported under Annual Action Plan 2022-23)

Project Bachpan began in 2017 with five pre-school learning centres established by JMFF in backward villages of Sikandra block of Jamui, Bihar, where a large number of children aged 3 - 6 years were undernourished and unschooled due to reasons including but not limited to - inability of their low-resource families to provide for balanced nutrition, limited intake capacity of government-run Anganwadis and large-looming lack of awareness or means of the families to enroll them into alternative, distant options. Given the critical need of not allowing the most crucial formative years of any child to go unaddressed, JMFF set up and ran these five centres impacting 118 children in the said age-group, providing holistic learning and daily one-time nutrition. These centres instilled faith and confidence in the community who requested JMFF for more such centres to be opened up in nearby villages as well. With the experiential learning of implementing Project Bachpan over the past four years, we undertook and executed a plan to scale up the initiative to the most deprived communities.

During the year, JMFF established seven new Bachpan centres, increasing the number of centres to 12 - 8 in Sikandra and 4 in Khaira blocks. Each of these centres is set up with a classroom, washroom, kitchen, play area and utility area. A total of 279 children (136 boys and 143 girls) are enrolled at these centres. Each centre has one teacher and one helper (sahayika), teaching children for four hours daily, using high- quality Teaching Learning Material (TLM) and play equipment that the students have never dreamed of, let alone used. The children are fed nutritious meals like vegetable khichadi, upma, halwa and vegetable daliya cooked by their mothers at the centres. The project operation is planned, monitored and executed by a JMFF project management team.

JM Financial Shiksha Samarthan

(multi-year project supported under Annual Action Plan 2021-22)

The two years of Covid-19 may be a period we dont want to remember, but many dont have a choice, owing to the deep grief the pandemic has left them with. While elders can express their feelings, young ones may or may not know how to. To make it worse, the loss of their fathers - the primary breadwinners in the family (as is the case with over a lakh families in India), has signaled a full-stop in the schooling of children and a question mark for their future. Responding timely to this crisis, JM Financial initiated Shiksha Samarthan to stand in support of every child whod lost their parent/s to Covid-19, by securing their education up to grade 12. This project initiated independently by JMFF in May 2021, has supported 3,873 students enrolled in over 2,000 private schools, in FY 2022-23. The project outreach was extended in collaboration with The Women & Child Development Department - Government of Maharashtra and with The Social Justice and Empowerment Department - Government of Gujarat.

The unique feature of this support is marked by the remittance of each private school students annual academic fee directly to their school bank accounts, up to an amount of 50,000/- per academic year. Alongside, in partnership with the aforementioned government departments and the Union Territory of Daman & Diu and Dadra & Nagar Haveli, 3,619 students enrolled in government schools have been provided with ancillary education support, amounting to 8,400/- per academic year.

For each student supported, JMFF has undertaken comprehensive due-diligence of their family backgrounds, verified academic and identification documents, presented the cases for support to an internal assessment panel, followed by disbursements and notifications to schools and parents.

The JMFF project management team of five members has been in close, regular and personal contact with the surviving parents and children, as appropriate. All the aforementioned processes have been undertaken through phone calls, e-mails, WhatsApp messages and virtual meetings, ensuring that the students can continue their education despite any physical or financial barriers they may face.

To help parents associate a face with JM Financial Foundation and for us to know the supported families a little further, physical meets were organised and executed between April 2022 and February 2023, with 255 surviving mothers across five locations

in Maharashtra. The struggles of all mothers werent and arent limited to the education of their children, but go beyond, to their own mental health, financial burdens and the weakened ability to face the world with practically no support from their relatives/friends.

JMFF Digital Saksharta

(multi-year project supported under Annual Action Plan 2020-21)

The Covid-19 pandemic highlighted, among other inequalities, the gaping digital divide in the country. This deprivation was seen to be largely experienced by the rural populace, with little to no connectivity to digital services. Moreover, among the poorest households, only a measly number enjoy access to digital connection and/or Internet services. With schools shut and no access to digital education, students in our CSR geographies of Palghar and Jamui appealed to JMFF to facilitate their induction into the world of computers, basis which the Digital Saksharta programme was implemented.

In Jamui district, Bihar, the programme is run by way of one hub centre equipped with 15 computers, imparting advanced and professional level IT (Information Technology) literacy and soft skills, and three village-based spoke centres equipped with nine computers, imparting basic digital education. Since the inception of these centres, the programme has trained 856

students aged 5 to 20 years in Jamui. Similarly, in Mokhada block of Palghar district, Maharashtra, one hub centre equipped with 50 computers has imparted advanced digital education to 525 students aged 13 to 20 years.

JMF Scholars - Ashoka University

(multi-year project supported under Annual Action Plan 2020-21)

Ashoka University located in Sonepat, Haryana, has one of the largest and most successful need-based financial aid programmes in the country, under which, 5,000+ students have been provided with scholarships in the last 10 years. Oftentimes, these students belong to lesser-privileged backgrounds, with families where their parents work as daily wage labourers, farmers, motor loaders and domestic helps, earning an annual income of less than 2 to 3 Lakh per year.

Interested students from over 150 towns and cities, 28 states of India and from across the world, apply and get admitted into the university on the basis of holistic selection criteria. The project has supported and named 55 such students as ‘JMFF Scholars, pursuing their three years undergraduate studies at Ashoka University.

• Farmers capacity-building •

Continuous training and awareness for our farmers forms the cornerstone of our project approach.

This year, we have trained a total (cumulative) of 1,774 farmer trainees through 72 organised training sessions centered around:

Training sessions


Paddy cultivation through Systematic Rice Intensification


Seed selection techniques - 7 crop varieties


Soil nutrient management

Planning cultivation of alternate crops - papaya, mangoes, watermelon, sweet-corn, lemon, capsicum


Pest management in vegetables and high-value crops

Nutrition gardens and their benefits


Drip irrigation and water management


Availability and uses of new and affordable agricultural equipment


Complementing our training efforts through meetings and exposure visits is the Model Farm (also known as Demonstration Farm) - an under 0.75-acre land parcel in JMFF premises in Lachhuar village (Sikandra). This plot of land has been cultivated and curated as a laboratory and exposure site, with the objective of demonstrating new, scientific and alternative practices in agriculture in the region, while utilizing the same resources available to all farmers. This year, the model farm has been home to 30+ varieties of vegetable plants, 21 varieties of fruit plants and 19 varieties of medicinal plants.

• Advanced agri-inputs

Along with training and continuous handholding, providing the right inputs to farmers is of paramount importance to the project objective. During the year, the Foundation has encouraged the cultivation of staples using high-quality, scientifically-researched seeds, along with that of high-value crops, to help the farmers earn, beyond providing for their families nutrition.

High-quality staple crops seeds



Inputs provided (seeds in kg)

Monsoon crop (Kharif season) -

FY 2022-23







Green Gram



Pigeon Pea



Winter crop (Rabi season) - FY 2022-23










High-value crops saplings



Inputs provided (saplings)














As planned, this year too, JMFF promoted Nutrition Gardens as low-cost, consistent and convenient sources of vegetables with 2,640 farmers in the two blocks. The project has contributed by educating farmers on the model and by providing them one kit each comprising 250 gms (approx.) of coriander, green spinach, red spinach, bitter gourd, carrot, beans, radish, beetroot, cabbage, cauliflower, brinjal, ladies finger and chilli. This is in addition to 45,045 vegetable plant saplings provided to 613 farmers.

Water Conservation Program

(multi-year project supported under Annual Action Plan 2022-23)

JMFF has been working in Jamui district to bring about rural transformation since FY 2017-18, across three blocks of Jamui, Bihar. Under this approach, our efforts in agriculture have helped introduce farmers to practice multicropping, harvesting crops in both seasons and also avail of scientific cattle healthcare services. However, central to the sustainability of these efforts is availability of water and its efficient management.

Against this backdrop, JMFF commissioned a water study to be conducted by an external institute, to identify scientifically, water-critical pockets in Jamui and provide technical inputs on watershed development. Study findings revealed that in our project geography, even though Khaira block has adequate water resources available, water conservation and management has been a challenge prohibiting better irrigation and a second crop.

Basis these findings, we undertook a pilot in Mahengro village of Khaira, with an approach of integrated water conservation and management, involving a community-based process, promoting the management of surface and ground water, land and related resources, while aiming to maximise socio-economic well-being equitably and maintaining the sustainability of vital ecosystems. Mahengro, made up of 110 tribal households living in kachcha houses, has 12 wells and five large and small ponds for drinking water and irrigation. These water bodies are meant to naturally recharge and maintain the groundwater table essential and sufficient for irrigation, keeping the soil health intact. However, over time, the village has been facing a severe water crisis owing to ill- informed practices and irresponsible water management, combined with insufficient monsoons.

As a first step in the direction of water conservation and management, JMFF undertook the complete renovation and beautification of 12 open wells constructed between 1973 and 1985, lying in a dilapidated state. Our team mapped each of the wells with the village community and obtained their written consensus for their cleaning, de-silting, repair and renovation. Between June 2022 to March 2023, these wells were cleaned with the deployment of local labourers, following a Standard Operating Procedure developed for their safety.

: Condition of wells prior to JMFF intervention :

The Foundation went one step further and also constructed a covered enclosure to help women perform their personal routines with dignity. As of the end of March 2023, all wells stand completely cleaned and renovated, with only painting and tiling work to be accomplished. Each well is expected to recharge effectively, thereby increasing the nearby groundwater table over an area of up to five acres.

Wells being used by Mahengro village residents post renovation

Integrated Livestock Development Centres (ILDC)

(multi-year project supported under Annual Action Plan 2022-23)

Bihar has had a historical association with cattle breeding. Considering that 76 per cent of its residents are engaged in agricultural pursuits, it is home to nearly 15.3 million cattle population (2019 Livestock Census). However, the absence of functional veterinary services and the resultant lack of access to timely cattle healthcare has denied most cattle the nutritional balance and impacted cattle-owners finances.

Prior to the project initiation, JMFF had discovered through a survey, the grave unavailability of veterinary care, difficulty in transporting large livestock to access healthcare, lack of awareness on preventive and timely curative veterinary services, and the dire need for advanced cattle rearing practices to increase milking capacity and thereby, farmers livelihood. It was in this context that the project ILDC was launched in January 2018, and project continues till date for long-term input enabling sustainable impact. Every ILDC under this project has been set up as a veterinary centre, associated with a local youth identified and trained to be a para-veterinarian (Gopal). A total of 22 ILDCs are located in 22 Gram Panchayats, serving cattle owners in 210+ villages across Chakai, Jhajha, Sikandra and Khaira blocks of Jamui, Bihar.

I Measuring temperature of calf belonging to farmer Basu Sah in village Dariyo, ILDC Borwa - Jhajha block, Jamui, Bihar

The project model enables the impactful delivery of decentralised livestock healthcare services in the region.

Gopals are equipped with motorbikes, laden with medicines and consumables. This helps them ensure timely services even for critical needs like calf delivery, major infection/ abscess, deep injuries and life-threatening health conditions, when otherwise, it would have been difficult for farmers to transport their cattle to the poorly functioning or nonfunctional veterinary centres located at distant places.









First-Aid Treatment


Infertility Treatment


Fodder Plots Cultivation


Farmers Training Sessions


Cattle Health Camps


The project has helped 2,943 farmers with 350 kg of Makhhan grass (Lolium Multiflorum) green fodder seeds. These seeds yield an output of 20 - 30 kg for at least four months annually, thereby providing fresh green and nutritious fodder for the cattle. During the year, in synergy with the Block Veterinary Officials, our Gopals have also facilitated the reach and administration of 2,683 doses of HSBQ (Haemorrhagic Septicaemia Black Quarter) and 3,929 doses of FMD (Foot and Mouth Disease) vaccines to 6,612 cattle in Jhajha and Sikandra blocks.

Integrated Village Development Project

(multi-year project supported under Annual Action Plan 2022-23)

Akin to our approach under the Model Village Development Project in Bihar, JMFF has implemented the Integrated Village Development Project in seven villages of Mokhada block, Palghar district, Maharashtra. The project was undertaken in FY 2018-19 through a partnership with the district authorities and continues to be implemented as a long-term project.

Prior to the project initiation, JMFF had observed, that despite enjoying a good average annual rainfall of 2,450 mm, tribal farmers in this region followed unscientific farming practices, mono-cropping, grew single crop annually with a mere cultivation of staples. While rainfall is abundant, there were no structures to arrest the downflow of rainwater off the undulating terrain, negating any possibility of its percolation into the ground. Moreover, the lack of awareness among the population residing in the far-flung villages, also resulted in government schemes and entitlements not reaching the last mile as intended. Against the backdrop of all these lacunae, JMFF implemented the Integrated Village Development Project with an aim of strengthening livelihoods through agriculture enhancement, water conservation and increasing community access to public entitlements.

• Agriculture enhancement

The adoption of improved agri-practices has a higher probability among farmers, when aided by frequent training and capacity building. This year, JMFF has trained 1,235 farmers through 44 organised sessions addressing - pest and disease management, horticulture and wadi farming, cashew processing, systematic rice intensification, vermicomposting, use of farm equipment such as conoweeders and soil health testing. In addition to these sessions, a total of 99 farmers were taken on three exposure visits to - Krishithon 2022 (Indias largest international agriculture trade fair held in Nashik), strawberry and French beans plantations in Sakhre Gondi village and to Krishi Vigyan Kendra (KVK) in Kosbad, Dahanu block.

I n tandem with the aforementioned capacity-building, the project provided the following inputs to the farmers in Kharif and Rabi seasons:



Inputs provided (seeds in kg)

Monsoon crop (Kharif season)

- FY 2022-23

Blue rice






Pigeon pea











(Support through

Finger millets


fertilizers and soil health testing with

KVK, Kosbad)

Winter crop (Rabi season) -

FY 2022-23







Custard apple



• Water conservation

Our water conservation interventions are targeted at conserving the heavy rainfall received by this region using low-cost, eco-friendly, rainwater harvesting structures, dug by farmers with our technical inputs and

handholding. The two kinds of structures encouraged are as under:

Continuous Contour Trenches (CCTs): JMFF introduced the concept of CCTs in FY 2019-20, as low-cost, sustainable trenches, dug lining the hill slopes of our project geography, with the aim of raising the groundwater table and increasing soil moisture. This year, the project facilitated the digging of 2,241 CCTs covering an area of 36.24 acres, with each CCT measuring 18 * 2.5 * 2 (length * depth * width), with a storage capacity of I 1,500 litres. In order to help bind the soil around I the trenches, the Foundation has also provided I the farmers with mango and cashew saplings as mentioned in the table above. I

Jalkunds: While CCTs are dug along hill-slopes,

jalkunds (literally translating to water ponds) were introduced in FY 2021-22 to be dug on low-lying terrains, especially in the wadi (cluster-farming) plots created with project support in the past three years. This year, 90 jalkunds have been dug on 90 farmer beneficiaries plots in Ase, Brahmangaon, Dhamani, Karoli and Kalamgaon villages. Each jalkund sized 10 metres * 10 I metres * 1.5 metres (length * depth * width) has I an average rainwater storage capacity of 96,000 I - 1,00,000 litres. I

8,267 CCTs

to infiltrate and raise groundwater tables

• Increasing community access to public entitlements

Two village-level helpdesks have been set up and run under the project since initiation, with the objective of educating the village communities on various government schemes and policies, enlisting their interest, facilitating the required paperwork, followed by submission to and follow up with the respective government departments for their successful convergence. Over the years, the project has been a catalyst for government entitlements reaching and benefitting their intended beneficiaries.

This year, a total of 683 beneficiaries have received scheme benefits amounting to 1.19 Cr.


Supporting philanthropic causes has been part of JM Financial Foundations essence and action since its inception. The JM Financial group of Companies has been supporting some very commendable work undertaken by several charitable organisations in the areas of education, healthcare, sports development, support to the differently-abled, animal welfare and promotion of Indian art and culture. This year, some of these initiatives supported by JMFF are as under:

Enabling education for children with special needs

Our supported organisations provide specialised care for children with most developmental disabilities. The support provided by JMFF has been extended to facilitate the education, engagement and rehabilitation efforts of differently-abled children; along with enabling research in traditional medicine.

Aiding healthcare services

Our support under healthcare has aided in the medical treatment of lesser-privileged children suffering from life- threatening diseases, medical and nutritional assistance to vulnerable children who are unable to be supported by their families owing to grave circumstances, eye-care services for the most-needy beneficiaries from rural areas in the southern part of India and quality medical treatment for rural communities in Satara district. We have facilitated the OT equipment for a deserving multi-speciality, charitable hospital in Mumbai; cleft lip surgeries for young children. Additionally, JMFF has extended itself to one of the most challenging services of providing relief to disabled individuals, enabling them with artificial limbs, calipers and other scientifically designed instruments.

Training of sports athletes

We continued our support to athletes training for the Olympics with nutrition inputs and sports management. During the year, our support has enabled the trained athletes win gold for the country in various sports such as shooting, javelin and badminton, and paralympic sportspersons to compete on recognised platforms.

Promotion of music and cultural traditions

Protecting our national cultural heritage is essential, as it maintains our integrity as a people. JMFF has been supporting an organisation in its efforts to protect, promote and preserve the Carnatic music tradition.

We at JM Financial, are driven by the success of our employees. Our employees have increased to 3,260 as of March 31, 2023 as compared to 2,405 as of March 31, 2022 and 1,978 employees as of March 31,2021. It represents a net addition of 854 employees over the course of the FY 202223 and a net addition of 1,281 employees over the last two financial years. We have expanded across our businesses and more specifically in our non-institutional businesses such as asset management, wealth and distribution, digital

businesses and retail mortgage. We are putting in dedicated efforts to attract and recruit the best talent in alignment with the organisational needs. Our Human Resources department plays a crucial role in ensuring that we attract, develop and retain the talent needed to achieve our strategic goals.

Our team always will work tirelessly to support our employees in the face of unprecedented challenges. We ensure to support our business objectives in order to attract and retain top talent, ensure compliance with employment laws and regulations, and promote a workplace culture that fosters collaboration, innovation and excellence.

Pragmatic \ Professional : Progressive

We believe that the credibility and reputation of the Firm is shaped by the collective conduct of individual employees and the

tagline affirms these three beliefs at its foundation to supplement the Group values.

Engagement Surveys - Great Place to Work

This year, five entities i.e. JM Financial Limited (representing Institutional Businesses), JM Financial Services Limited, JM Financial Asset Management Limited, JM Financial Products Limited (Dwello) and JM Financial Home Loans Limited participated in the Great Place to Work survey.

JM Financial Group has been accredited as Great Place to Work-Certified™ by the Great Place to Work Institute for all five participating entities for the period Feb 2023 - Feb 2024. j

Talent Management

We believe that investing in our employees is critical to our long-term success and we will continue to prioritise talent management in years to come focusing on creating a highly engaged and motivated workforce.

We aim at improving the recruitment process, enhancing the onboarding experience, investing in the training and development as well as creating career development plans or succession plan.

Workforce Diversity

Our efforts to create a diverse and inclusive workforce are guided by a solid foundation to provide equal employment opportunities to all individuals.


For the whole Group, a Centralised Campus team has been created to manage campus hiring. The team plays a key role in forging a solid connection with the Institutes, B-schools, CAs, Law schools and Schools specializing in Social Studies.

The campus team constantly engages with the Institutes for live projects, internships, and final placements after getting the hiring requirements from the businesses.

Rewards and Recognition

Rewards & Recognition plays a vital role in any work environment wherein the employees are recognised and rewarded for their contributions towards achieving organisational goals. The timely and fair recognition awards motivate employees and at JM Financial we provide these boosters at regular intervals and at each business level.

We use other tools such as iCheer to share appreciations wherein the employees can appreciate each other.

Employee Engagement

We at JM Financial, engage our employees through various initiatives at Group as well as business level. As our tradition, we celebrate all the festivals in great zest. Employees at JM Financial Home Loans came together to celebrate our amazing monuments and our culture to bring awareness towards our monuments sites on the World Heritage Day on 18th April, 2022 which included fun & games, Virtual quiz along with Birthday Celebrations.

This year on the International Yoga Day on 21st June, 2022, we scheduled a in person workshop that included few chair/desk yoga which we can do even while working in our JM Financial Home Loans. We also arranged a monsoon trek for more than 50 people from various departments that work interconnected.

75th Independence Day was celebrated this year - from singing songs, playing fun games, and creating memories. We also arranged a beach cleaning drive in the month of August 2022 with support of leaders to

contribute towards the environment. Along with which we also arranged a tree plantation drive at Rajkot.

We celebrated a lightening Diwali with Kids to work day to celebrate an integrated Diwali. A variety of dishes prepared by employees were savoured along with them enjoying a day filled with fun, dance and games. The group and the entities also celebrated a wonderful evening on the Christmas eve with Secret Santa at some locations and gathering to celebrate the eve in other entities.

To celebrate Republic Day this year, we had an evening open session for all the Pan-India locations coming together and sharing their love for the nation using songs or instruments they like. We also arranged games and fun activities.

On the occasion of Womens Day, an event was held to honour womens accomplishments and contributions. Senior management addressed the gathering in Cnergy office followed by some games and fun.

Employee Wellbeing Initiatives

At JM Financial, we are committed to providing our employees with the resources and support they need to achieve their best possible physical, mental, and emotional health. Some of the initiatives include Doctor on Call, Leave & Paid Time Off.

Performance Management

We follow a comprehensive performance evaluation process for annual reviews, which was digitalised and a structured performance evaluation calendar was launched.

This practice helps us identify the capabilities of employees and leverage the same. It also helps us to suggest and plan development in the identified areas through training. For this, a Training Need Analysis is captured.

Trainings were provided to new joinees, in order to help them get equipped with the appraisal process and the system.

Compensation and Benefits

Our compensation framework is structured to align the interests of our employees with the long-term interests of the group and its other stakeholders.

JM Financial also offers various benefits designed to meet the needs of our employees. These benefits are an integral part of our Company and provide employees and their families valuable support, during employment with JM Financial.

Succession Planning

At JM Financial, we promote an atmosphere of inclusion, by encouraging the next level of employees to take higher responsibilities.

Managers along with Human Resources formulate a customised grooming and orientation of high potentials, by carefully planning their work experiences. Their skills and capabilities are developed through further training and mentoring.

Learning and Development

Employee training initiatives have been an integral part of the HR vision and long term objectives of our firm.

The new normal has undoubtedly had an impact on the mode of trainings which led us to conduct both physical as well as virtual sessions. This combination worked well as we saw an increase in the level of participation. Also, we conduct department specific trainings which focus on inducting the new hires helping them understand their department better.

At JM Financial Home Loans, we arranged behavioural trainings called ‘Pragati as our learning intervention to engage, enhance & encourage our employees. We continued this intervention from October to December 2022. We also arranged policy training, Critical Policy Changes for Operations was conducted to highlight key changes in the policy. Monthly Credit Refresher training for new joinees is organised. DigiZen Sales App Refresher session to all branch sales employees & for our new joinees. A product training of newly launched MSME products was also arranged. Other trainings like

‘Own Your Success and ‘Cyber Security Training were also arranged in this year.

For Retail Wealth, a training on System development has been imparted in the month of January, 2023. This training highlighted new changes or developments in the system. Regular training for product and process were also arranged for internal teams.

LEAP Plus -Phase II was launched in the month of February 2023. LEAP Plus training focuses on the functional skill development for the JM Financial Asset Management employees. With the use of this online training intervention, our LEAP Plus training programme equips staff with the necessary product knowledge.

Stepping Stones is a learning intervention designed specifically for the Investment Banking team, in which team leaders facilitate an interactive session on a technical topic/case study/recent deal.


This report describing our activities, projections and expectations for the future, may contain certain ‘forward looking statements within the meaning of applicable laws and regulations. The actual results of business may differ materially from those expressed or implied due to various risk factors and uncertainties. These risk factors and uncertainties include the effect of domestic as well as global economic and political events, volatility in interest rates and in the securities market, new regulations and government policies that may impact our businesses as well as ability to implement our strategies. We are under no obligation to publicly amend, modify or revise any forward-looking statements on the basis of any subsequent developments, information or events and assume no liability for any action taken by anyone on the basis of any information contained herein.