Bank of America is set to acquire up to a 49.9% stake in Jio Credit, the lending subsidiary of Jio Financial Services, in a deal worth as much as ₹18,268 crore ($1.9 billion). The agreement marks a significant entry by the US banking major into India’s rapidly expanding consumer credit and non-banking financial services market.
Under the proposed transaction, Bank of America will initially acquire a 26.5% stake in Jio Credit. It will have the option to raise its holding to 49.9% through warrants, subject to regulatory approvals and other conditions. The investment will create a joint venture between Bank of America and Jio Financial Services.
The transaction values Jio Credit at around ₹36,600 crore after the investment. The deal also gives the US lender a direct position in a business that has expanded rapidly since Jio Financial Services began building its financial services operations independently.
Jio Credit has become a key part of Jio Financial’s lending strategy. The company offers a range of products including home loans, loans against property, loans against mutual funds and shares, corporate loans and financing solutions for businesses. Its digital-first model is designed to make financial products easier to access across India.
As of June 30, 2026, Jio Credit had assets under management of about ₹30,667 crore, highlighting the scale it has achieved in a relatively short period. The lending business has grown as demand for consumer and business credit has increased across the country.
The investment for Bank of America provides a way to participate directly in India’s growing financial services market. India has seen increasing demand for loans as household incomes rise, businesses expand and more consumers move into the formal financial system.
The partnership will combine Jio’s understanding of the Indian market and its digital ecosystem with Bank of America’s global financial expertise. The two companies are expected to work together to expand Jio Credit’s lending operations and develop wider access to financial products.
The deal is also significant because Bank of America has traditionally been much stronger in corporate banking, investment banking and wealth management than in direct retail lending in overseas markets. Its investment in Jio Credit therefore represents a sizeable strategic bet on India’s long-term credit growth.
Jio Financial Services, backed by Reliance Industries chairman Mukesh Ambani, has been steadily expanding its presence across India’s financial sector. The company was separated from Reliance Industries and listed as an independent entity in 2023.
Since then, Jio Financial has pursued partnerships with several major international financial institutions. It has joined hands with BlackRock in asset management and with Allianz in insurance. The Bank of America transaction adds another major global financial institution to that growing network.
For Jio Financial, bringing in Bank of America could provide more than capital. The partnership could provide access to international expertise in areas such as credit assessment, risk management, financial product development and lending practices.
The timing is also important. India’s NBFC sector has become an increasingly important source of credit for consumers and businesses. Digital technology has allowed non-bank lenders to reach customers more efficiently, while the expansion of digital payments and financial inclusion has created new opportunities for lenders.
Jio has a particularly large digital ecosystem through its telecommunications and technology businesses. The group has millions of customers and extensive digital infrastructure, giving its financial services operations a potentially significant distribution advantage.
Bank of America’s investment indicates that global financial institutions are paying close attention to this opportunity. The deal comes amid a broader increase in foreign interest in India’s banking and financial services industry.
Other international banks have also increased their exposure to Indian financial institutions in recent years, attracted by the country’s economic growth and relatively strong credit demand. The Jio Credit transaction stands out because of its size and because it gives Bank of America a substantial stake in a relatively young lending platform.
Investors also responded positively to the announcement. Jio Financial Services shares rose more than 3% on August 13, reaching around ₹263 during trading, as markets assessed the potential benefits of the partnership. The reaction reflected expectations that the deal could accelerate the company’s expansion in lending and strengthen its financial position.
The transaction, however, is still subject to the required regulatory and statutory approvals. Bank of America’s initial 26.5% holding will be established through an investment in Jio Credit, while the additional stake will come through warrants that can potentially take its ownership to 49.9%.
The investment also gives Jio Credit additional resources to expand its loan book. For a growing NBFC, access to capital is crucial as lending volumes increase because a larger loan book requires a stronger capital base and robust risk-management systems.
Jio Credit has already reported strong growth in its core lending operations. For the financial year ended March 2026, its net interest income reached ₹625 crore, while profit after tax rose to ₹224 crore. The company also reported a capital adequacy ratio of 25.91%, indicating a strong capital position.
The Bank of America partnership could now provide another boost as Jio Financial seeks to build a broader financial services ecosystem spanning lending, payments, insurance, investments and asset management.