Bank of America agrees to invest $1.9bn in Jio Credit stake

Bank of America has agreed to acquire a stake of up to 49.9 per cent in Jio Credit Limited, the non-bank lending subsidiary of Mumbai-based Jio Financial Services Limited, for approximately $1.9 billion. The deal, announced on Wednesday, represents a significant expansion of the American lender’s footprint in India, which the World Bank identifies as one of the fastest-growing economies globally.

The investment will be executed through a preferential allotment of equity shares and warrants, totalling up to 182.68 billion rupees. Under the initial terms, Bank of America will secure a 26.5 per cent equity interest in Jio Credit Limited. This holding can increase to the maximum threshold of 49.9 per cent upon the exercise of the associated warrants. The transaction is currently subject to necessary regulatory and statutory approvals before it can be finalised.

Jio Credit Limited was established in 2025 and has rapidly expanded its operations, growing its assets under management to $3.2 billion by 30 June. Bank of America stated that the partnership provides Jio Credit with the capital required for continued growth while allowing access to global expertise. In return, the American bank aims to deepen its presence in a market it has supported for decades.

Brian Moynihan, chief executive officer of Bank of America, described India as one of the world’s most important growth markets. He noted that the investment reflects confidence in the country’s future and highlighted Jio Financial Services’ ability to achieve remarkable scale in a short period. The two institutions will have equal representation on the board of Jio Credit Limited.

Mukesh Ambani, founder of Jio Financial Services, said the partnership is a pivotal milestone in the company’s mission to make finance more seamless and simpler for Indian consumers. He emphasised that the collaboration leverages new technology and high governance standards. By combining digital reach with Bank of America’s global pedigree, the firms aim to eliminate friction in credit delivery and empower inclusive economic progress across the nation.