Bank of America has announced a definitive agreement to acquire up to 49.9% stake in Jio Financial Services' lending arm Jio Credit for ₹18,268.22 crore (approximately $1.9 billion). According to reports from CNBC TV18, The Economic Times, and latest exchange filings, this marks one of the largest foreign investments in an Indian non-bank lender. The partnership was announced on Wednesday (August 12) by both companies, with the venture combining JFSL's digital reach and knowledge of the Indian market with BofA's global financial services expertise. The deal represents the latest large investment in India's financial services sector, joining Japan's MUFG investment in Shriram Finance and Dubai-based bank Emirates NBD's 60% stake in lender RBL Bank. Jio Financial Services is a publicly-listed entity and acts as a holding company, serving as the financial services arm of billionaire Mukesh Ambani-backed conglomerate Reliance Industries Ltd.
Under the transaction structure, Bank of America will initially acquire a 26.5% equity interest in Jio Credit through a preferential allotment of equity shares. As reported by CNBC TV18, The Economic Times, and latest exchange filings, the investment will include equity shares worth ₹6,612.90 crore and warrants worth ₹11,655.32 crore, with the warrants providing a pathway for the US banking major to increase its stake to 49.9% through exercise of these warrants. The proposed transaction values Jio Credit at around $3.8 billion, equivalent to about 2.5 times its net worth. Bank of America will pay 25% of the warrant consideration, amounting to ₹2,913.83 crore, upfront, taking the total upfront cash investment to ₹9,526.73 crore. The remaining ₹8,741.49 crore will be payable upon conversion of the warrants, taking BofA's total investment to ₹18,268.22 crore. Jio Credit operates as a wholly owned non-banking financial company (NBFC) within Jio Financial Services, making it a significant player in the Indian financial services sector. The digital-first lender has built assets under management of ₹30,667 crore (approximately $3.2 billion) as of June 30, 2026, within just two years of starting operations. The transaction is subject to regulatory and statutory approvals.
Jio Credit has demonstrated remarkable growth momentum, with its assets under management reaching ₹30,667 crore as of June 30, 2026, representing a massive 163% growth from ₹11,665 crore in the year-ago period, as per its investor presentation for the June quarter. The lender offers secured credit for individuals as well as enterprises, including retail mortgages and loans against securities (LAS). India's non-bank financier segment has been growing at breakneck speed, with RBI stating in June that the sector continued to demonstrate resilience, underpinned by strong capitalization, solid net interest margins, sustained profitability, and declining levels of asset impairment. The central bank noted that while overall credit growth moderated, lending to the retail segment remained robust, driven largely by a sharp expansion in gold loan portfolio, which now forms 17.4% of the NBFCs' retail portfolio. Jio Credit's capital adequacy ratio stood at 22.35% at the end of June, with a diversified product mix of 46% mortgages, 10% loan against securities and 44% corporate and small and medium enterprise (SME) loans. The deal places the post-investment value of Jio Credit at ₹36,600 crore, reflecting the significant growth potential of the venture. The digital-first lender has expanded its physical presence to 24 locations across 18 cities in India, enhancing customer outreach and ensuring retail product diversification. The lender offers home loans, loans against property, loans against shares, corporate loans, and SME loans, with home loan and loans to corporates and SMEs comprising 90% of its AUM.
According to Abizer Diwanji, Founder of NeoStrat Advisors, the deal brings fresh capital, global visibility and access to overseas funding for Jio Credit, while intensifying competition in digital lending. As reported by CNBC TV18, Diwanji noted that the partnership is particularly significant because it brings foreign capital to segments such as small and medium-sized enterprises (SMEs) that need greater access to credit. "For once, foreign banks are coming into the underbelly of India. Where is the credit of Jio Credit going? It's going to the underbelly, the small and medium-sized enterprises (SMEs), and that sector of India which really needs the credit," Diwanji explained. The Jio Credit board will have equal representation from JFSL and BofA, while Jio Credit will continue to be consolidated under Jio Financial's reporting structure. Diwanji believes the partnership could provide global visibility and help Jio Credit access overseas funding markets, enabling the company to raise Tier 2 capital and high corporate bonds from overseas markets to grow significantly. The investment is part of a broader trend of foreign banks entering India through investments in domestic financial institutions, with Sumitomo Mitsui Banking Corporation (SMBC), Emirates National Bank of Dubai (NBD) and Mitsubishi UFJ Financial Group (MUFG) making similar moves. Diwanji expects the traditional distinction between banks and NBFCs to become less clear as institutions gain greater access to capital, with the key requirement being adequate capital to support growth rather than necessarily finding global joint venture partners.
Jio Financial Services shares were in strong demand in early trade on Thursday, rising as much as 3.27% to hit an intraday high of ₹263.35 per share on the BSE, following the announcement of the strategic investment in Jio Credit. As of 10:47 AM, the shares were trading nearly 1% up at ₹257.40 while the BSE Sensex was down 0.3% at 77,741. A total of 32.6 million shares of the company had changed hands on BSE and NSE combined at the time of writing. The blue-chip stock with a market cap of ₹1.7 trillion has risen 11% in the last three months but is down 13% on a year-to-date basis. Mukesh D Ambani, Chairman and Managing Director of Reliance Industries, emphasized that India's aspiration to become a developed nation by 2047 requires a financial ecosystem built on scale, trust and inclusivity. "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 democratisation of responsible credit, characterised by lower costs for the customer, absolute transparency, and expanding access to capital as our economy grows," Ambani said. He added that Jio Financial Services is focused on making finance simpler and more accessible for Indians through technology-led solutions. "Our strategic partnership with Bank of America is a pivotal milestone in this mission. By combining our digital reach with Bank of America's global pedigree, we will eliminate friction in credit delivery for all Indians, empowering them to chart a prosperous and inclusive path forward for the entire nation," he said. Brian Moynihan, Chair and Chief Executive Officer of Bank of America, highlighted that India is one of the world's most important growth markets, reflecting confidence in its future and decades of support for the market. The partnership also adds to Jio Financial Services' growing roster of global financial partners, building on existing joint ventures with BlackRock in asset management and wealth management, and with Allianz in insurance. Bank of America serves more than 69 million clients in the United States with approximately 3,500 retail financial centers.
