Bank of America to acquire up to 49.9% stake in Jio Credit for Rs 18,268 crore

Bank of America will acquire up to a 49.9 per cent stake in Jio Credit Limited in a deal worth as much as Rs 18,268 crore, marking a major foreign investment in India's rapidly expanding non-banking financial sector. Jio Financial Services Limited and the US banking giant have entered into a definitive agreement to establish a joint venture through the investment in Jio Credit, the lending arm of Jio Financial Services. Under the proposed transaction, Bank of America will initially acquire a 26.5 per cent stake in Jio Credit through a primary infusion of capital. It will also receive warrants that can subsequently be exercised to increase its holding to as much as 49.9 per cent.

Deal values Jio Credit at $3.8 billion

The investment of up to Rs 18,268 crore, or approximately $1.9 billion, values Jio Credit at around $3.8 billion. The transaction is subject to regulatory and other customary approvals. The partnership will combine Jio Financial Services' digital reach and understanding of the Indian market with Bank of America's global banking expertise and experience in credit and risk management.

Jio Credit operates as a non-banking financial company and has expanded rapidly since beginning operations. Its assets under management crossed Rs 25,700 crore as of March 31, 2026, representing substantial growth over the previous financial year. The company's lending portfolio includes home loans, loans against property, corporate loans and loans against securities. Mortgages accounted for about 45 per cent of its assets under management at the end of FY26, while corporate loans contributed 44 per cent and loans against securities made up the remaining 11 per cent. Jio Credit reported a profit after tax of Rs 224 crore for FY26, more than twice its profit in the previous financial year. Its shareholders' equity stood at more than Rs 7,100 crore at the end of March.

Jio expands global partnerships

The agreement with Bank of America adds another major international financial institution to Jio Financial Services' growing network of global partners. Jio Financial has already joined hands with BlackRock in India's asset management business and with Allianz in insurance, as it builds a diversified financial services platform spanning lending, payments, investments and insurance.

For Bank of America, the transaction represents a significant expansion in India and provides direct exposure to the country's growing demand for retail and corporate credit. The US lender expects the partnership to benefit from India's economic growth and the continued expansion of formal financial services. The deal also comes amid growing interest from overseas financial institutions in India's banking and financial services sector. Several global lenders have made or pursued sizeable investments in Indian financial institutions in recent years.

Once the transaction is completed and the warrants are fully exercised, Jio Financial Services will retain a controlling 50.1 per cent stake in Jio Credit, while Bank of America will hold up to 49.9 per cent.