Now Reading: Bank of America to invest Rs 18,268 crore in Jio Credit
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Bank of America to invest Rs 18,268 crore in Jio Credit
Bank of America will invest up to Rs 18,268 crore, or about $1.9 billion, in Jio Credit, the lending subsidiary of Jio Financial Services. The deal will initially give BofA a 26.5%…
The Story in Brief
Bank of America will invest up to Rs 18,268 crore, or about $1.9 billion, in Jio Credit, the lending subsidiary of Jio Financial Services. The deal will initially give BofA a 26.5% stake through a preferential share issue, with warrants allowing it to reach 49.9%, ETBFSI reports. The transaction needs regulatory and statutory approvals.
Jio Credit had assets under management of Rs 30,667 crore as of June 30, 2026, after two years of operations. Its board will have equal representation from both companies, while its current management will continue running the business. The companies said BofA will provide financial services, governance, risk management and technology expertise. Executives said the investment should not be read as BofA entering retail lending directly.
The Indian Opinion
The deal is being presented as a vote of confidence in India and as a quick route to wider credit, but neither claim should be accepted on slogans alone. Jio Credit’s asset growth is substantial, yet scale does not prove loan quality or affordable borrowing. The key test is whether its portfolio stays healthy as lending expands, and whether customers actually see lower costs and clearer terms. Future disclosures on defaults, provisions and interest rates will show what this partnership delivers.
Sources (3): timesofindia.indiatimes.com, bfsi.economictimes.indiatimes.com, timesnownews.com
This story was synthesised by AI from the 3 sources linked above.
Updated: this story now draws on 3 sources.
