Jio Financial Services (JFSL) and Bank of America have entered into a joint venture agreement under which the US-based lender will acquire up to a 49.9% stake in Jio Credit, the lending arm of JFSL, for USD 1.9 billion or INR 18,268 crore.
Under the agreement, Bank of America's subsidiary NB Holdings, USA will initially acquire a 26.50% stake in Jio Credit through a preferential issue of equity shares for up to INR 6,613 crore. It will then subscribe to 7.56 crore warrants for INR 11,655 crore. Each warrant can be converted into one equity share within 18 months.
Twenty-five per cent of the amount payable for the warrants will be paid when the warrants are subscribed to, while the remaining amount will be payable at the time of conversion. If all the warrants are converted, NB Holdings will hold 49.90% of the paid-up equity share capital of Jio Credit.
The proposed transaction is subject to regulatory and statutory approvals. Following completion, the board of Jio Credit will have equal representation from JFSL and Bank of America. The existing management team will continue to oversee the company's strategy and operations, while Jio Credit will remain a subsidiary of JFSL for financial reporting purposes.
Jio Credit has been operating for about two years and has focused on retail borrowers and small businesses. Its lending portfolio has included products such as home loans. The company had assets under management of INR 30,667 crore as of June 30, 2026, according to the joint statement.
The NBFC has not yet entered unsecured lending and consumer finance, despite these being identified as major areas of focus when the business was launched. The proposed investment from Bank of America could provide additional capital and global financial services expertise as Jio Credit expands its lending operations.
Jio Credit's financial performance had also strengthened in FY26. According to JFSL's annual results, the NBFC's net interest income reached INR 625 crore for the year, while profit after tax more than doubled from the previous year to INR 224 crore. Its shareholders' equity stood at more than INR 7,100 crore as of the end of March, while its capital adequacy ratio was 25.91%.
Jio Credit is a Reserve Bank of India-registered NBFC that does not accept public deposits. The company was formerly known as Jio Finance Limited and is a wholly owned subsidiary of JFSL.
Bank of America already has a presence in India, with four branches that primarily serve corporate and institutional clients. Its Indian operations also include investment banking and brokerage activities. The bank has been present in the country since 1964.
The transaction is being positioned as a financial investment in India rather than a move by Bank of America into retail lending on its own. The proposed joint venture will combine Jio Financial Services' digital distribution and knowledge of the Indian market with Bank of America's international financial services experience.
Bank of America chair and chief executive Brian Moynihan said the investment reflects the bank's view of India as an important growth market. He added that combining Jio's scale, local expertise and customer base with BofA's global reach and digital experience could help widen access to financial services.
Mukesh Ambani, chairman and managing director of Reliance Industries and chairman of JFSL's parent company, said the partnership would bring together Jio's digital reach and Bank of America's global financial services capabilities.
Ambani has had a long association with Bank of America. He joined the bank's board in 2011 for a two-year term and later served on its global advisory council.
The Bank of America transaction is JFSL's third major global financial services partnership. The company has already partnered with BlackRock in asset management and Allianz in insurance.
JFSL's partnership with BlackRock has been used to build its mutual fund and related investment businesses. In the insurance segment, Allianz Jio Reinsurance has already started operations and completed its first quarter of FY27 with gross written premium of INR 266 crore.
Jio Financial Services said the launch of Jio Allianz General Insurance is awaiting regulatory approvals. It also has a non-binding agreement with Allianz to explore opportunities in the life insurance business. The two companies plan to offer insurance products across life, general and health insurance, subject to the required approvals.
The company's broader financial services strategy covers four areas Borrow, Invest, Transact and Protect spanning lending, investments, payments and insurance. Its group structure includes Jio Credit, Jio Payments Bank, Jio Insurance Broking and other financial services businesses, alongside its joint ventures with global financial companies.
JFSL had also made Jio Payments Bank a wholly owned subsidiary after acquiring the remaining stake held by State Bank of India in 2025. The payments bank's customer base and deposits increased during FY26, adding another part to JFSL's wider financial services network.
The latest transaction therefore gives Jio Credit access to a global financial institution while allowing Bank of America to take a substantial financial position in an Indian lending business. Reuters reported that the deal values Jio Credit at around USD 3.8 billion and comes as foreign financial institutions continue to increase their exposure to India's financial services sector.
JFSL shares closed 0.83% higher at INR 255 on the BSE in the session when the transaction was announced, while the benchmark index declined 0.24%.
Source PTI