Bank of America Corporation will invest up to ₹18,268 crore for a stake of as much as 49.9% in Jio Credit Limited, the wholly-owned lending subsidiary of Jio Financial Services Limited, under a definitive agreement announced on Wednesday.
The US bank will come in as a joint venture partner through a preferential allotment of equity shares and warrants in the non-banking financial company. The transaction gives Bank of America an initial equity interest of 26.5%, which rises to 49.9% if the warrants are exercised in full. It is subject to regulatory and statutory approvals.
Jio Credit will continue to be consolidated as a subsidiary in Jio Financial Services’ financial reporting. Its board of directors will have equal representation from the two partners and the existing management team will continue to drive strategy and operations at the NBFC, Jio said in the exchange filing.
The lender reported assets under management of ₹30,667 crore as of June 30, built up within two years of beginning operations. It described itself as a digital-first lender working to bridge the gap between traditional finance and modern accessibility and has said it intends to add products and widen borrowing access within India.
Why the tie-up
The two sides said the venture will pair Jio Financial Services’ digital reach and knowledge of the domestic market with Bank of America’s global financial services expertise. Beyond long-term capital for loan growth, the arrangement gives the NBFC access to the US bank’s expertise in financial services, governance, risk management and technology.
For Bank of America, the investment expands its participation in an economy growing at roughly twice the global rate, the filing stated. The bank has been present in India for decades, largely through corporate and investment banking; the joint venture gives it a route into retail credit through a partner with an established local platform.
Reliance Industries Chairman Mukesh Ambani framed the transaction around credit access and cost. “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,” he 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,” said Brian Moynihan, Chair and Chief Executive Officer of Bank of America.
Moynihan said 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 would help expand access to financial services and support India’s continued economic growth.
Background and approvals
Jio Financial Services was demerged from Reliance Industries and listed in 2023. It houses the group’s lending, payments, insurance broking and asset management businesses, the last through a joint venture with BlackRock. Jio Credit is the group’s principal lending vehicle and has scaled quickly on the back of the Reliance ecosystem’s customer base.
The companies did not specify a timeline for completion or for the exercise of the warrants. Acquiring a shareholding of the size proposed in a non-banking financial company requires prior approval from the Reserve Bank of India under its change-in-control norms.