Bank of America Buys 49.9% Stake in Jio Credit for ₹18,268 Crore

Bank of America Corporation's subsidiary, NB Holdings Corporation, will acquire a 49.9% stake in Jio Credit, the lending arm of Jio Financial Services, for ₹18,268.22 crore. The investment will be made through a preferential allotment of equity shares and warrants, following a definitive agreement signed between the two companies.

The transaction will see Bank of America initially purchase a 26.5% stake in Jio Credit, which can increase to 49.9% after the exercise of warrants. The deal is subject to regulatory and statutory approvals, with Jio Financial Services continuing to hold the remaining stake in the non-banking financial company.

The investment amount is around 2.5 times Jio Credit's estimated net worth of ₹7,259 crore. Jio Credit has rapidly expanded its lending operations, building assets under management of ₹30,667 crore as of June 30, 2026, within two years of starting business. The equity infusion is expected to provide Jio Credit with additional capital to grow its lending portfolio and expand its range of financial products.

For Bank of America, the investment offers an opportunity to participate in India's fast-growing financial services sector through a digital-focused platform. Bank of America CEO Brian Moynihan said the investment reflects confidence in India's long-term growth potential and strengthens the lender's participation in one of the world's key markets.

Following completion of the transaction, Jio Credit's board will have equal representation from Jio Financial Services and Bank of America. The existing management team will continue to oversee operations, while Jio Credit will remain a consolidated subsidiary of Jio Financial Services.

Jio Financial Services Chairman Mukesh Ambani said the partnership would combine Jio's digital capabilities with Bank of America's global financial expertise to improve credit delivery across India. The collaboration is also expected to provide Jio Credit access to BofA's experience in areas such as financial services, technology, governance, and risk management as it expands its lending business.

The company aims to increase access to credit through a wider range of borrowing solutions for Indian consumers and businesses. This partnership is expected to have a significant impact on India's financial services sector, with Jio Credit poised to become a major player in the market.

The deal is a significant development in India's financial services sector, with Bank of America's investment expected to provide a boost to Jio Credit's growth plans. With the Indian economy growing rapidly, the demand for credit is expected to increase, and Jio Credit is well-positioned to capitalize on this trend.

In conclusion, the partnership between Jio Credit and Bank of America is a significant development in India's financial services sector, with the potential to improve credit delivery and increase access to financial products for Indian consumers and businesses.