India Business Journal - BofA to buy 49.9% in Jio Credit for Rs 18,268 crore to gain from robust loan growth

MONEY

BofA to buy 49.9% in Jio Credit for Rs 18,268 crore to gain from robust loan growth

IBJ Bureau
Aug 13, 2026

Bank of America (BofA) will acquire a 49.9 per cent stake in Jio Credit, a subsidiary of Jio Financial Services, in a Rs 18,268-crore deal, as the US lender expands its presence in India’s ‌fast-growing financial sector.

BofA will become a joint venture ⁠partner in non-banking financial company (NBFC) Jio Credit through a preferential allotment of equity shares and warrants, the two companies have said.

The transaction values Jio Credit at around $3.8 billion, according to a Reuters’ calculation.

The deal initially gives BofA a 26.5 per cent stake, with its holding potentially rising to 49.9 per cent after the exercise of the warrants.

Jio Credit will issue shares worth up to 6,613 crore and warrants totalling Rs 11,655 crore to BofA as a part of the deal.

“By combining Jio Financial Services’ scale, local expertise and customer base with Bank of America’s global reach, digital experience and close to 250 years ‌of ⁠leadership in banking, we can help expand access to financial services and support India’s continued economic growth," BofA CEO Brian Moynihan has said.

The deal extends a recent run of large foreign investments in Indian banks and non-bank lenders, which are seeing a strong demand for credit and low loan delinquency rates.

Some of the recent deals include Japan’s MUFG’s investment in Shriram Finance, Dubai-based bank Emirates NBD’s 60 per cent stake purchase in RBL Bank and Sumitomo Mitsui Financial Group’s investment in Yes Bank.