Bank of America buys stake in Jio Credit for India push

Bank of America has agreed to buy up to 49.9% of Jio Credit from Jio Financial Services in a deal valued at ₹18,268 crore, or about $1.9 billion.

The investment will be made through a preferential allotment of equity shares and warrants in Jio Credit, the non-bank lending subsidiary of Jio Financial Services. The transaction will create a joint venture structure, while Jio Credit will remain a subsidiary in Jio Financial Services' financial reporting.

Jio Credit has grown quickly since launch. By the end of June, it had assets under management of ₹30,667 crore, or about $3.2 billion, after two years in operation.

The agreement gives the US bank a bigger foothold in India's lending market through a local partner that already operates a consumer finance platform. For Jio Financial Services, it brings fresh capital for loan growth and links the business with a global bank experienced in governance, risk management, and technology.

Board structure

Under the terms of the deal, Jio Credit's board will have equal representation from Jio Financial Services and Bank of America. The existing management team will remain in place to oversee strategy and day-to-day operations.

Jio Credit offers secured lending products including mortgages, loans against securities, commercial finance, and supply chain finance. Jio Financial Services has built a broader financial services network around lending, payments, insurance, savings, and investment products through its app and subsidiaries.

The investment adds to a series of partnerships by Jio Financial Services as it expands that network. The group already has joint ventures with BlackRock in asset management and wealth products, and with Allianz in reinsurance and general and health insurance.

Bank of America has had a long presence in India, mainly serving corporate and institutional clients. The Jio Credit transaction marks a move into a business with direct exposure to retail and commercial borrowers in one of the world's largest consumer markets.

Market push

India's non-bank finance sector has expanded rapidly as lenders use digital distribution to reach customers beyond the traditional banking system. That growth has also brought closer scrutiny of underwriting standards, governance, and funding models, making capital support and risk controls central issues for lenders seeking scale.

Mukesh D. Ambani outlined Jio Financial Services' rationale for the partnership.

"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. Jio Financial Services is committed to making finance more seamless and simpler for Indians than ever before, leveraging new technology and anchored in the highest standards of governance. Our strategic partnership with Bank of America is a pivotal milestone in this mission. By combining our digital reach with Bank of America's global pedigree, we will eliminate friction in credit delivery for all Indians, empowering them to chart a prosperous and inclusive path forward for the entire nation," said Mukesh D. Ambani, Jio Financial Services.

For Bank of America, the agreement provides an entry into a part of the Indian financial market that has been growing faster than many developed economies. The lender said the investment reflects confidence in India and in Jio Financial Services' ability to build scale quickly.

"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. We are excited to become a partner with Jio Financial Services, which has achieved remarkable scale in a short period of time, growing to more than $3 billion in assets under management in just two years. By 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, we can help expand access to financial services and support India's continued economic growth," said Brian Moynihan, Chair and Chief Executive Officer, Bank of America.