Bank of America will invest up to Rs 18,268 crore (US$1.9 billion) to acquire an initial 26.5% stake in Jio Credit, the wholly owned NBFC lending subsidiary of Jio Financial Services, with the stake potentially rising to 49.9% under a joint venture agreement, according to Business Today.
The investment will be made through a preferential allotment of equity shares and warrants. Assuming full subscription to the warrants, the stake will rise to 49.9%. The transaction is subject to regulatory and statutory approvals, Business Today reported.
Deal Structure and Valuation
Under the terms reported by Business Today, Bank of America's initial 26.5% stake will be acquired in Jio Credit, and full warrant subscription would lift it to 49.9%. The post-investment value of Jio Credit is placed at Rs 36,600 crore.
Key financial details from the report:
- Investment size: up to Rs 18,268 crore (US$1.9 billion)
- Initial stake: 26.5%
- Potential stake after warrant conversion: 49.9%
- Post-investment valuation of Jio Credit: Rs 36,600 crore
- Jio Credit AUM (as of June 30, 2026): Rs 30,667 crore (US$3.2 billion)
| Metric | Value |
|---|---|
| Initial stake | 26.5% |
| Potential stake | 49.9% |
| Investment cap | Rs 18,268 crore (US$1.9 billion) |
| Post-investment valuation | Rs 36,600 crore |
| AUM as of June 30, 2026 | Rs 30,667 crore (US$3.2 billion) |
Jio Credit had an AUM of Rs 30,667 crore (US$3.2 billion) as of June 30, 2026, two years after starting operations, according to Business Today.
Strategic Rationale
The investment will provide capital for growth and access to Bank of America's expertise in financial services, governance, risk management and technology. Bank of America CEO Brian Moynihan said the partnership combines Jio Financial Services' scale and local expertise with its global capabilities.
"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."
Governance and Approvals
Jio Credit's board will have equal representation, while its existing management will continue running the NBFC, Business Today reported. The transaction remains subject to regulatory and statutory approvals.
The deal will deepen Bank of America's participation in India as the financial sector expands, according to the report. For Jio Credit, the capital injection comes two years into its operations, with the NBFC already holding Rs 30,667 crore in AUM. Bank of America's backing brings an international financial institution into India's NBFC lending segment through a joint venture structure that preserves Jio Credit's existing management.
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