Now Reading: Bank of America invests Rs 18,268 crore for 49.9% Jio Credit
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Bank of America invests Rs 18,268 crore for 49.9% Jio Credit
Bank of America will acquire an initial 26.5% stake in Jio Credit, the NBFC arm of Jio Financial Services, with an option to increase to 49.9% through a total investment of up…
The Story in Brief
Bank of America will acquire an initial 26.5% stake in Jio Credit, the NBFC arm of Jio Financial Services, with an option to increase to 49.9% through a total investment of up to Rs 18,268 crore ($1.9 billion). The post-investment valuation of Jio Credit is Rs 36,600 crore.
The investment will be via preferential allotment of equity shares and warrants. Jio Credit, which had assets under management of Rs 30,667 crore as of June 30, 2026, will gain capital and access to Bank of America’s expertise in risk management, governance and technology. The deal is subject to regulatory approvals.
The Indian Opinion
This deal signals strong foreign confidence in India’s digital lending story, but the hype needs tempering. Bank of America’s previous retail partnerships abroad have been measured, not explosive. The real test is whether its conservative risk culture can mesh with Reliance’s speed-at-scale approach. Will governance reforms slow Jio Credit’s growth or make it sustainable? Watch how quickly the warrants convert and whether asset quality holds up.
Source: timesofindia.indiatimes.com
This story was synthesised by AI from the source linked above.
