Now Reading: Bank of America to buy up to 49.9% in Jio Credit for $1.9 bn
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Bank of America to buy up to 49.9% in Jio Credit for $1.9 bn
Bank of America will invest up to Rs 18,268 crore ($1.9 billion) in Jio Credit Ltd, the lending arm of Jio Financial Services, acquiring a 26.5% equity stake that can rise to…
The Story in Brief
Bank of America will invest up to Rs 18,268 crore ($1.9 billion) in Jio Credit Ltd, the lending arm of Jio Financial Services, acquiring a 26.5% equity stake that can rise to 49.9% through convertible warrants. The deal values Jio Credit at about $3.8 billion. Jio Credit, an RBI-regulated NBFC, held assets under management of Rs 30,667 crore as of June 30, 2026, up 163% year-on-year. The joint venture keeps Jio Credit as a consolidated subsidiary under Jio Financial Services, with equal board representation. Existing management will continue operations. Regulatory approvals are pending.
The Indian Opinion
Headlines tour the deal as a vote of confidence in India’s NBFC sector. But the real test is whether this foreign capital comes with strings that tighten domestic credit access. Jio Credit remains a subsidiary; BoFA gets equal board seats but no management control. That keeps the Mukesh Ambani engine in the driver’s seat, for now. Watch if RBI’s approval comes with conditions on how BoFA’s global risk models are applied to a fast-growing, tech-heavy lender. Will the promised "frictionless credit" reach a small shopkeeper or just the prime consumer? That number will tell.
Sources (3): livemint.com, inc42.com, thehindu.com
This story was synthesised by AI from the 3 sources linked above.
Updated: this story now draws on 3 sources.
