Bank of America Corporation (BofA) and Jio Financial Services Limited (JFSL) signed a landmark joint venture agreement under which the U.S. banking major will acquire up to a 49.9% stake in Jio Credit Limited (JCL)—the wholly-owned non-banking financial company (NBFC) lending subsidiary of JFSL.
The proposed transaction values Jio Credit at ~$3.8 billion (~2.5 times its net worth), marking one of the largest foreign direct investments in an Indian non-bank lending entity.
1. Deal Structure & Investment Tranches
The investment—totalling up to ₹18,268 crore (~$1.9 billion)—will be executed via a preferential allotment of equity shares and warrants:
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Initial Phase: Bank of America will acquire an initial 26.5% equity stake through a preferential share allotment.
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Warrant Conversion: BofA’s equity holding can rise up to 49.9% upon the subscription and full exercise of warrants.
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Financial Consolidation: Jio Credit will remain consolidated as a subsidiary in Jio Financial Services’ financial reporting.
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Board & Management: The Board of Directors of Jio Credit will feature equal representation from both Jio Financial Services and Bank of America. The existing management team will continue to lead day-to-day strategy and operations.
2. Growth Trajectory & Objectives
Having completed two years of operations, Jio Credit has built assets under management (AUM) of ₹30,667 crore (~$3.2 billion) as of June 30, 2026.
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Capital Deployment: Fresh funds will be used to expand Jio Credit’s loan book across retail and enterprise segments, introduce new credit offerings, and upgrade governance and risk-management frameworks.
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Strategic Vision: Combining JFSL’s digital distribution ecosystem with Bank of America’s international credit underwriting pedigree.
3. Leadership Comments
“Our country’s progress toward becoming Viksit Bharat by 2047 demands a financial ecosystem built on scale, trust, and inclusivity. Central to this journey is the democratization of responsible credit… Our strategic partnership with Bank of America is a pivotal milestone in this mission.”
— Mukesh D. Ambani, Chairman, Jio Financial Services Limited
“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.”
— Brian Moynihan, Chairman & CEO, Bank of America Corporation
