Jio Financial Services Ltd (JFSL) and Bank of America have finalized a definitive agreement to establish a joint venture in India. This significant partnership will see the US banking giant acquiring up to a 49.9% stake in Jio Credit, JFSL’s wholly-owned non-banking financial company (NBFC).
The proposed investment, which includes both equity shares and warrants, is projected to reach Rs 18,268 crore (approximately $1.9 billion) upon full subscription. This transaction marks one of the most substantial foreign investments recently seen in India's rapidly expanding financial services sector.
Investment Structure and Regulatory Approvals
Initially, Bank of America plans to acquire a 26.5% equity stake in Jio Credit through a preferential allotment of shares. The agreement includes an option for the US lender to increase its holding to 49.9% by exercising warrants at a later stage. JFSL has clarified that the entire transaction remains subject to securing all necessary regulatory and statutory approvals.
Jio Credit, which commenced operations two years ago, reported assets under management (AUM) of Rs 30,667 crore as of June 30, 2026. The digital-first lender offers a diverse range of credit products and is strategically focused on expanding its presence across India’s dynamic lending market.
Strategic Vision for India's Credit Ecosystem
The collaboration is designed to leverage Jio Financial’s extensive digital reach and advanced technology platform with Bank of America’s global financial expertise. This synergy is expected to enable the joint venture to capitalize on significant growth opportunities within India's evolving credit ecosystem.
Commenting on the new partnership, Reliance Industries Chairman and MD Mukesh Ambani stated, "By combining our digital reach with Bank of America’s global pedigree, we will eliminate friction in credit delivery for all Indians." He emphasized that the tie-up aligns with Jio Financial Services’ objective of making credit more accessible, transparent, and affordable for the Indian populace.