Bank of America (NYSE: BAC) is set to become a significant joint venture partner in Jio Credit Limited, the non-banking finance company subsidiary of Jio Financial Services, through an investment valued at up to ₹18,268 crore, or roughly $1.9 billion.
The agreement, announced on August 12, 2026, allows the US banking giant to acquire as much as a 49.9 percent interest in the Indian lender via a preferential allotment of equity shares and warrants.
Under the terms of the deal, which remains subject to regulatory and statutory approvals, Bank of America—through its wholly owned subsidiary NB Holdings Corporation—will initially secure a 26.5 percent equity stake.
This holding can increase to 49.9 percent once the associated warrants are exercised.
The structure involves the subscription of equity shares worth approximately ₹6,613 crore and warrants valued at around ₹11,655 crore.
A portion of the warrant consideration will be paid upfront, with the balance due upon conversion within 18 months of allotment.
Jio Credit has demonstrated rapid expansion since its launch. As of June 30, 2026, the digital-first NBFC reported assets under management of ₹30,667 crore, equivalent to about $3.2 billion, achieved in just two years of operations.
It provides a range of secured lending products, including mortgages, loans against securities, and financing for corporate and small-to-medium enterprises, with a focus on broadening access to credit across India.
The partnership aims to merge Jio Financial Services’ extensive digital capabilities, local market knowledge, and large customer base with Bank of America’s international expertise, technology strengths, and nearly 250 years of banking experience.
Officials from both organizations highlighted shared goals around enhancing digital access to financial services, fostering innovation, improving credit availability, and maintaining robust risk management practices.
Mukesh D. Ambani, Chairman and Managing Director of Reliance Industries, described the collaboration as a key step in democratizing responsible credit in India.
He emphasized combining digital reach with global standards to reduce barriers in credit delivery and support inclusive economic progress.
Brian Moynihan, Chair and Chief Executive Officer of Bank of America, noted that the investment underscores confidence in India as one of the world’s most important growth markets.
He pointed to Jio Credit’s swift scaling and the potential to expand financial inclusion by pairing local strengths with Bank of America’s global resources.
Following completion, Jio Credit’s board will feature equal representation from both partners.
The current management team will continue to oversee strategy and day-to-day operations, and the entity will remain consolidated as a subsidiary in Jio Financial Services’ financial statements.
The capital infusion is expected to support sustainable growth in the loan book and product expansion.
This move now seemingly reflects broader interest from international financial institutions in India’s expanding financial services sector, which benefits from strong credit demand and economic momentum.
For Bank of America, it strengthens its presence in a high-growth market through a partner with established local capabilities. For Jio Credit, it provides both funding and access to global practices in governance, risk, and technology.