BofA to pick 49.9% stake in Jio Credit

Bank of America Corporation (BofA) through its arm NB Holdings Corporation has agreed to buy up to 49.9 per cent stake in Jio Financial Services Ltd’s (JFSL) wholly-owned NBFC (non-bank financial company) lending subsidiary, Jio Credit Ltd (JCL) through a preferential allotment of equity shares and warrants.

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BofA will be become joint venture partner and its investment, including the equity shares and warrants (if fully subscribed), would be Rs 18,268 crore (USD 1.9 billion).

The transaction initially gives Bank of America a 26.5 per cent equity interest in JCL, which can go up to 49.9 per cent upon exercise of the warrants.

The investment will allow BofA to expand its participation in the rapidly growing Indian market, the world’s fastest growing major economy at double the global growth rate, while doing so with a partner that has local expertise and differentiated capabilities, an official statement said.

Beyond securing long-term capital for sustainable loan growth, the collaboration provides the venture with access to BofA’s expertise related to financial services, governance, risk management, and technology, it added.

The venture will combine JFSL’s digital reach and knowledge of the Indian market with BofA’s global financial services expertise, it added.

Both companies share the common vision of improving clients’ financial lives through state-of-the-art digital access, innovation, access to credit and strong risk management, it said.

JCL is among India’s fastest growing NBFCs, having built assets under management (AUM) of Rs 30,667 crore (USD 3.2 billion) as of 30 June 2026, within just two years of operations.

The digital-first lender is focused on bridging the gap between traditional finance and modern accessibility through its diverse suite of lending products, with ambitions to responsibly continue its growth trajectory by providing borrowing opportunities across existing and new products within India, the statement said.

JCL’s Board of Directors will have equal representation from both JFSL and BofA.

The existing management team of JCL will continue driving the strategy and operations at the NBFC and JCL will continue to be consolidated as a subsidiary in JFSL’s financial reporting.

“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 — characterised by lower costs for the customer, absolute transparency, and expanding access to capital as our economy grows,” Mukesh D. Ambani said.

Jio Financial Services is committed to making finance more seamless and simpler for Indians than ever before, leveraging new technology and anchored in the highest standards of governance, he said.

“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, Mukesh Ambani, Chairman and Managing Director, Reliance Industries said.

“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, Chair and Chief Executive Officer, Bank of America said.

“We are excited to become a partner with Jio Financial Services, which has achieved remarkable scale in a short period of time, growing to more than $3 billion in assets under management in just two years,” he said.

“By combining Jio Financial Services’ scale, local expertise and customer base with Bank of America’s global reach, digital experience and close to 250 years of leadership in banking, we can help expand access to financial services and support India’s continued economic growth,” Brian Moynihan added.

 

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