Bank of America will invest up to Rs 18,268 crore ($1.92 billion) in Jio Credit, initially taking a 26.5% stake and potentially increasing it to 49.9% through warrants.
Bank of America (BofA) has entered into a definitive agreement with Jio Financial Services to acquire up to a 49.9% stake in Jio Credit Limited, the lending subsidiary of Jio Financial Services. The transaction, which includes equity shares and warrants, represents an investment of up to Rs 18,268 crore ($1.92 billion).
The deal creates a major joint venture between one of the world’s largest financial institutions and Jio Financial Services, combining Bank of America’s global financial expertise with Jio’s digital ecosystem and reach in India.
Bank of America to Initially Take 26.5% Stake
Under the proposed transaction, Bank of America will initially acquire a 26.5% equity interest in Jio Credit through a preferential allotment of equity shares.
The remaining potential stake will come through warrants. If the warrants are fully exercised, Bank of America’s ownership in Jio Credit could increase to 49.9%, making it a joint venture partner alongside Jio Financial Services.
The investment structure is:
| Parameter | Details |
|---|---|
| Total potential investment | Rs 18,268 crore |
| US dollar value | $1.92 billion |
| Initial BofA stake | 26.5% |
| Maximum potential stake | 49.9% |
| Company | Jio Credit Limited |
| Parent company | Jio Financial Services |
Jio Credit AUM Crosses Rs 30,000 Crore
The Bank of America investment comes as Jio Credit rapidly expands its lending business.
Jio Credit had Assets Under Management (AUM) of Rs 30,667 crore as of June 30, 2026, according to information reported following the transaction. The lending business has built its portfolio across secured lending and other credit products in a relatively short period.
The scale of the business provides Bank of America with an entry point into India’s expanding credit market while giving Jio Credit access to additional capital and global financial expertise.
Why Bank of America Is Investing in Jio Credit
The partnership gives both companies an opportunity to combine complementary strengths.
For Bank of America, the investment provides exposure to India’s rapidly growing financial services and consumer credit market. Reuters reported that the transaction is part of BofA’s strategy to expand its presence in India’s financial sector.
For Jio Financial Services, the partnership brings a global financial institution into its lending business at a time when Jio Credit is scaling its loan portfolio.
The combination could support:
- Expansion of Jio Credit’s lending portfolio.
- Greater access to capital for future growth.
- International financial and risk-management expertise.
- Expansion of digital lending capabilities.
- Increased presence across India’s consumer and business credit markets.
Jio Financial Services Expands Global Partnerships
The Bank of America-Jio Credit transaction is another major international partnership for Jio Financial Services.
Jio Financial Services has already partnered with global financial institutions in other areas, including BlackRock in asset management and Allianz in insurance. The Bank of America deal further expands Jio’s strategy of working with established global financial companies.
The latest transaction therefore extends Jio’s financial-services ambitions beyond lending and into a broader ecosystem of investment, insurance and asset-management businesses.
What the Jio Credit Deal Means for India’s Lending Market
The Bank of America Jio Credit stake deal could become significant for India’s digital lending industry.
Jio brings its large digital ecosystem and understanding of Indian customers, while Bank of America contributes global banking experience and financial expertise. Together, the companies can potentially accelerate the development of digital credit products for consumers and businesses.
The transaction also highlights continued international interest in India’s financial-services sector, particularly in businesses positioned to benefit from increasing demand for formal credit.
Key Numbers at a Glance
| Metric | Value |
|---|---|
| Bank of America investment | Up to Rs 18,268 crore |
| Investment in USD | $1.92 billion |
| Initial stake | 26.5% |
| Potential maximum stake | 49.9% |
| Jio Credit AUM | Rs 30,667 crore |
| AUM date | June 30, 2026 |
The transaction is subject to applicable regulatory and other customary conditions. Bank of America’s initial investment will give it a significant position in Jio Credit, while the warrants provide a route to increase its stake to 49.9%.
The Bank of America Jio Credit stake transaction marks a major development for Jio Financial Services as it strengthens its lending business with global financial expertise and substantial additional capital. With Jio Credit’s AUM already at Rs 30,667 crore, the partnership could provide further momentum to its expansion in India’s rapidly growing credit market.
