Bank of America to acquire up to 49.9% stake in Jio Credit in Rs 18,268 crore deal
Mumbai Augus, t 12
Bank of America Corporation and Jio Financial Services Limited on Wednesday announced a definitive agreement under which the US-based financial services major will acquire up to a 49.9 per cent stake in Jio Credit Limited, the wholly owned NBFC lending subsidiary of Jio Financial Services.
The investment, comprising equity shares and warrants, is valued at Rs 18,268 crore, or approximately USD 1.9 billion, according to the companies. The transaction will be carried out through a preferential allotment of equity shares and warrants.
Jio Credit had assets under management of Rs 30,667 crore, or around USD 3.2 billion, as of June 30, 2026, having built its lending business within two years of operations. The proposed joint venture is aimed at combining Jio Financial Services' digital reach and understanding of the Indian market with Bank of America's global financial services expertise.
The companies said the partnership will provide Jio Credit with additional capital to support sustainable loan growth, besides access to Bank of America's expertise in financial services, governance, risk management and technology. The board of Jio Credit will have equal representation from Jio Financial Services and Bank of America, while the existing management team will continue to oversee the company's strategy and operations.
Commenting on the partnership, Jio Financial Services Chairman Mukesh D. Ambani said, "Our strategic partnership with Bank of America is a pivotal milestone in this mission." He said the collaboration would combine Jio's digital reach with Bank of America's global expertise to expand access to responsible credit.
Bank of America Chairman and CEO Brian Moynihan said, "India is one of the world's most important growth markets, and this investment reflects our confidence in its future, a market we know well and have supported for decades." He added that the partnership could help expand access to financial services and support India's economic growth.
The transaction remains subject to applicable regulatory and statutory approvals. The companies said the venture is intended to capitalise on growth opportunities in India's expanding financial services sector.
— ANI
Reader Comments
Rs 18,268 crore is a huge vote of confidence in India's growth story. But I wonder how this will affect small NBFCs and local lenders who are already struggling with competition. The Jio ecosystem is vast; if they aggressively push credit products, it could squeeze out smaller players who can't match this scale. Hope there's enough market for everyone.
As long as this translates to lower interest rates and more affordable loans for the common man, I'm all in. We often hear about big deals but the benefits need to reach the ground level. With Jio Credit, millions of Indians who never had formal credit histories could get a fair chance. Fingers crossed! 🤞
Ambani knows how to play the long game. First telecom, then retail, now credit. Pairing up with BofA gives Jio instant global credibility and brings best-in-class compliance standards. But I'm also mindful of data privacy – with such a vast user base, they're sitting on a goldmine of financial data. Need robust safeguards to prevent misuse. 👀
Two years to reach Rs 30,667 crore AUM is phenomenal! This JV can truly be a game-changer for India's under-banked population. With BofA's mentorship, Jio Credit could set new benchmarks in responsible lending. Exciting times ahead for our financial inclusion journey! 🚀
Having worked in banking in both countries, let me say this is a smart move by BofA. India's credit market
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