Now Reading: Bank of America to buy up to 49.9% in Jio Credit for Rs 18,268 crore
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Bank of America to buy up to 49.9% in Jio Credit for Rs 18,268 crore
Bank of America to buy up to 49.9% in Jio Credit for Rs 18,268 crore
Bank of America will acquire up to a 49.9% stake in Jio Credit, the NBFC arm of Jio Financial Services, for up to Rs 18,268 crore ($1.9 billion). The deal values Jio…
The Story in Brief
Bank of America will acquire up to a 49.9% stake in Jio Credit, the NBFC arm of Jio Financial Services, for up to Rs 18,268 crore ($1.9 billion). The deal values Jio Credit at Rs 36,600 crore post investment. The US bank will initially take a 26.5% stake through a preferential allotment of equity shares for Rs 6,612.9 crore, along with warrants worth Rs 11,655.3 crore that can be converted into equity within 18 months.
Jio Credit had assets under management of Rs 30,667 crore as of June 2026 and focuses entirely on secured loans such as home loans and loans against property. Bank of America CEO Brian Moynihan said the partnership combines Jio's local scale with the bank's global expertise. The deal is subject to regulatory approvals. Jio Credit's board will have equal representation, but existing management will continue operations.
The Indian Opinion
This joint venture between a US banking giant and a Reliance-owned NBFC is being painted as a straightforward vote of confidence in India's financial sector. But the fine print matters. Bank of America gets near-equal board control but risks only a minority investment at Rs 36,600 crore valuation, while Jio Financial retains operational control. The real test will be whether Jio Credit, which has so far stuck to secured lending, can use this global expertise to enter unsecured lending without a spike in bad loans. Watch the gross NPA numbers over the next four quarters.
Sources (2): timesofindia.indiatimes.com, medianama.com
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
