Jio Financial Services Limited (JFSL) and Wall Street banking giant Bank of America (BofA) signed a definitive joint venture agreement under which BofA will acquire up to a 49.9% stake in Jio Credit Limited (JCL)—the non-banking financial company (NBFC) lending subsidiary of JFSL.
The multi-tranche investment totals up to ₹18,268 crore (~$1.9 billion), representing one of the largest foreign direct investments (FDI) in an Indian non-bank lender.
1. Deal Breakdown & Investment Architecture
The deal will be executed via a preferential allotment of equity shares and warrants:
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Initial Allotment: Bank of America will acquire an immediate 26.5% equity stake in Jio Credit through preferential share issuance.
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Warrant Conversion: BofA’s total holding can rise up to 49.9% as warrants are fully subscribed and exercised over time.
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Subsidiary Consolidation: Jio Credit will remain consolidated as a subsidiary under Jio Financial Services in its financial reporting.
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Board & Operations: The Board of Directors will feature equal representation from both JFSL and BofA. JCL’s current management team will continue to direct strategy and daily operations.
2. Strategic Rationale & Operational Footprint
Having completed two years of operations, Jio Credit built assets under management (AUM) of ₹30,667 crore (~$3.2 billion) as of June 30, 2026.
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Capital Injection: Fresh funds will serve as growth capital to expand loan portfolios across retail, mortgage, securities-backed, and corporate supply chain financing.
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Synergistic Model: Merges Jio Financial’s digital distribution network across India with BofA’s international governance, risk analytics, and product depth.
3. Executive Commentary
“Our country’s progress toward becoming Viksit Bharat by 2047 demands a financial ecosystem built on scale, trust, and inclusivity… By combining our digital reach with Bank of America’s global pedigree, we will eliminate friction in credit delivery for all Indians.”
— Mukesh D. Ambani, Chairman, Reliance Industries / Jio Financial Services
“India is one of the world’s most important growth markets, and this investment reflects our confidence in its future… We are excited to become a partner with Jio Financial Services, which has achieved remarkable scale in a short period.”
— Brian Moynihan, Chairman & CEO, Bank of America Corporation
