Bank of America is paying up to ₹18,268 crore ($1.9 billion) for a near-half stake in Jio Financial Services' lending arm, betting on India's credit boom.
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BofA to buy 49.9% of Jio Credit in $1.9 billion venture
Bank of America agreed to acquire up to 49.9 percent of Jio Credit for as much as ₹18,268 crore ($1.9 billion), pairing global banking expertise with the digital reach of Mukesh Ambani's lending arm in India's fastest-growing credit market.
"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 at Bank of America, said.
The deal gives BofA an initial 26.5 percent equity interest in Jio Credit, rising to 49.9 percent on exercise of warrants, through a preferential allotment of shares and warrants. Jio Credit, among India's fastest-growing non-bank lenders, has built assets under management of ₹30,667 crore ($3.2 billion) since starting operations two years ago. The transaction is subject to regulatory and statutory approvals.
The investment lets BofA expand in the world's fastest-growing major economy, growing at double the global rate, with a partner that holds local expertise. Jio Credit's board will carry equal representation from both firms, and the lender will remain consolidated in Jio Financial Services' financial reporting.
A Digital-First Lender Backed by Global Capital
Jio Credit, formerly Jio Finance, is a wholly owned subsidiary of Jio Financial Services, a core investment company registered with the Reserve Bank of India. The digital-native lender spans secured credit from retail mortgages and loans against securities to commercial and supply-chain finance, anchored in advanced risk frameworks.
The capital injection supports Jio Credit's growth while giving the venture access to BofA's expertise in governance, risk management and technology. Jio Financial Services has built a full-stack financial ecosystem, including 50:50 joint ventures with BlackRock for mutual funds and wealth management and with Allianz Group for reinsurance and general and health insurance.
Why the Deal Matters
For BofA, the venture deepens a decades-long presence in India, where it already serves corporations and institutions. The bank, which counts 69 million U.S. clients and operates in more than 35 countries, gains a digital-first distribution channel in a market where credit penetration remains low relative to GDP.
For Jio Financial Services, the partnership brings long-term capital and global banking standards to a lender that has scaled to $3.2 billion in assets in two years. The venture positions both firms to compete with India's established banks and fintech lenders as the country's financial sector expands alongside economic growth.
The transaction, expected to close after regulatory approvals, gives Jio Credit the funding to extend borrowing across existing and new products. If the warrants are fully exercised, BofA's total investment reaches $1.9 billion at an exchange rate of 96 rupees per dollar.
This article is for informational purposes only and does not constitute investment advice.
