Bank of America Corporation and Jio Financial Services Limited announced on August 12, 2026, that they have signed a definitive agreement for the US banking major to acquire up to 49.9% stake in Jio Credit Limited, the non-banking financial company (NBFC) lending subsidiary of Jio Financial Services. The total investment, including equity shares and warrants, is valued at ₹18,268 crore (approximately $1.9 billion), marking one of the largest foreign investments in India’s NBFC sector. The deal positions Bank of America to tap into India’s rapidly expanding credit market through a digital-first lending platform backed by the Reliance Industries ecosystem.
What Is the Joint Venture About?
The joint venture brings together two complementary strengths. Jio Financial Services contributes its deep understanding of the Indian market, digital reach, and an established customer base built through the Reliance ecosystem. Bank of America brings nearly 250 years of global banking expertise, world-class risk management frameworks, and advanced financial technology capabilities.
Both companies have stated that their shared vision is to improve clients’ financial lives through state-of-the-art digital access, innovation, credit availability, and strong risk management. The partnership is structured to combine Jio’s local execution capabilities with Bank of America’s global pedigree in financial services.
Under the agreement, the Board of Directors of Jio Credit Limited will have equal representation from both Jio Financial Services and Bank of America. However, the existing management team of Jio Credit will continue to drive the strategy and operations at the NBFC. Jio Credit will also remain a subsidiary of Jio Financial Services and continue to be consolidated in its financial reporting.
About Jio Credit Limited
Jio Credit Limited (JCL), formerly known as Jio Finance Limited, is a wholly owned subsidiary of Jio Financial Services Limited. It is a digital-native NBFC that aims to bridge the gap between traditional finance and modern accessibility. The company offers a full spectrum of secured credit products, including retail assets like mortgages and loans against securities, as well as commercial and supply chain finance.
What makes JCL remarkable is its growth trajectory. Within just two years of commencing operations, the company had built assets under management (AUM) of ₹30,667 crore (approximately $3.2 billion) as of June 30, 2026. This pace of growth is exceptional even by the standards of India’s fast-moving NBFC sector, where established players often take a decade or more to reach similar scales.
The company operates on a digital-first model, leveraging advanced risk frameworks to deliver lending products to both individuals and enterprises. Its focus on responsible credit, combined with the technological backbone of the Reliance ecosystem, has allowed it to rapidly scale across India’s diverse lending market.
How the Deal Is Structured
The transaction is being executed in two stages. In the first stage, Bank of America will acquire a 26.5% equity interest in Jio Credit through a preferential allotment of equity shares. In the second stage, its stake can rise to 49.9% through the exercise of warrants. The total investment, if fully subscribed, amounts to ₹18,268 crore, calculated at an assumed foreign exchange conversion rate of US$1 = ₹96.
The preferential allotment route is a common mechanism in Indian corporate transactions where shares are issued to specific investors at a predetermined price, often at a premium to the market price. This route allows the company to raise capital quickly without going through a public offering process.
The deal is subject to necessary regulatory and statutory approvals. Since this involves a foreign entity acquiring a significant stake in an Indian NBFC, approvals from the Reserve Bank of India (RBI) and other relevant authorities will be required before the transaction can be completed.
Jio Financial Services: The Parent Company
Jio Financial Services Limited (JFSL) is a Core Investment Company (CIC) registered with the Reserve Bank of India. It was originally a subsidiary of Reliance Industries Limited, operating as Reliance Strategic Investments Limited since 1999. The company was demerged as an independent entity and listed on Indian stock exchanges in August 2023, marking the entry of Mukesh Ambani’s Reliance group into the financial services sector in a big way.
JFSL operates a full-stack financial services ecosystem through multiple customer-facing subsidiaries. These include Jio Credit Limited (lending), Jio Insurance Broking Limited (insurance distribution), Jio Payment Solutions Limited (digital payments), Jio Leasing Services Limited (leasing), Jio Finance Platform and Service Limited, and Jio Payments Bank Limited.
Beyond its own subsidiaries, JFSL has built an impressive network of global partnerships through joint ventures. A 50:50 joint venture with BlackRock, the world’s largest asset manager, operates Jio BlackRock Asset Management Private Limited for mutual funds and Jio BlackRock Investment Advisers Private Limited for wealth management. In the insurance space, JFSL has formed a 50:50 joint venture with the Allianz Group, establishing Allianz Jio Reinsurance Limited for reinsurance services and Jio Allianz General Insurance Limited for general and health insurance in India.
Through the JioFinance app, customers can access loans, savings accounts, investment products, UPI services, bill payments, recharges, digital insurance, and financial tracking tools. This digital-first approach has been central to JFSL’s strategy of reaching customers across India, including in tier-2 and tier-3 cities.
Bank of America: A Global Banking Giant
Bank of America Corporation is one of the world’s largest financial institutions. Founded in 1904 as Bank of Italy by Amadeo Giannini in San Francisco, the company has grown into a global banking powerhouse with close to 250 years of combined heritage in banking. It is listed on the New York Stock Exchange under the ticker symbol BAC.
The bank serves more than 69 million clients in the United States alone, with approximately 3,500 retail financial centres, around 15,000 ATMs, and about 60 million verified digital users. It is the number one small business lender in the United States, as per FDIC data, and is a global leader in wealth management, corporate and investment banking, and trading across a broad range of asset classes. The bank operates in more than 35 countries and jurisdictions worldwide.
Bank of America has had a presence in India since 1964, when it opened its first office in Mumbai. Over the decades, it has expanded its India operations to include corporate and investment banking, lending, and treasury services. The bank’s India headquarters is in Mumbai, with offices in Delhi, Bengaluru, and Chennai. In recent years, Bank of America has been actively investing in India, reflecting the country’s position as one of the world’s fastest-growing major economies. CEO Brian Moynihan has repeatedly described India as “one of the world’s most important growth markets.”
Why This Deal Matters for India’s NBFC Sector
India’s Non-Banking Financial Company (NBFC) sector has been witnessing remarkable growth. NBFC credit grew at approximately 20% year-on-year in FY25, significantly outpacing the 12% credit growth recorded by banks. The NBFC MSME (Micro, Small and Medium Enterprises) assets under management is projected to cross ₹5.3 lakh crore by FY26, supported by a compound annual growth rate of 32% from FY21 to FY24. The Reserve Bank of India has noted that NBFCs continued to record double-digit credit growth, with the NBFC credit to GDP ratio rising steadily.
Against this backdrop, the Bank of America-Jio Credit joint venture carries several implications for the sector. First, it signals continued confidence of global financial institutions in India’s growth story. A $1.9 billion investment by one of the world’s largest banks is a strong endorsement of the Indian market’s potential.
Second, the deal highlights the growing attractiveness of digital-first NBFCs. Traditional lending models are being challenged by technology-driven platforms that can reach underserved segments more efficiently. Jio Credit’s ability to build ₹30,667 crore in AUM within just two years demonstrates the power of combining digital infrastructure with financial services.
Third, the partnership could set a template for future foreign investments in India’s financial sector. The joint venture model, where a global player brings expertise and capital while a local partner provides market knowledge and digital reach, may become an increasingly common structure for foreign entry into Indian financial services.
Mukesh Ambani, Chairman of Reliance Industries, framed the deal in the context of India’s long-term vision. He stated that the country’s progress toward becoming a developed nation by 2047 demands a financial ecosystem built on scale, trust, and inclusivity, with democratisation of responsible credit at its centre.
Regulatory Framework and Approvals
Foreign investment in India’s NBFC sector is governed by the Foreign Exchange Management Act (FEMA), 2000, and regulated by the Reserve Bank of India. The Department for Promotion of Industry and Internal Trade (DPIIT) under the Ministry of Commerce and Industry sets the overall FDI policy framework.
India permits 100% foreign direct investment in the NBFC sector through the automatic route for most activities, including lending, provided the NBFC is regulated by a financial sector regulator such as the RBI, SEBI, or IRDAI. Under the automatic route, no prior approval from the Government of India or the RBI is required before making the investment. The only obligation is post-facto reporting to the RBI through Form FC-GPR within 30 days of share allotment on the RBI FIRMS portal.
However, the specific terms of the Bank of America-Jio Credit deal, including the preferential allotment structure and the warrant exercise mechanism, will need to comply with RBI regulations on foreign investment in NBFCs, SEBI regulations on preferential allotments (since Jio Financial Services is a listed company), and any other applicable statutory requirements.
The transaction is also subject to the conditions typically attached to foreign investments in the financial sector, including minimum capitalisation norms (where applicable), pricing guidelines under FEMA, and sector-specific regulatory compliances. Both companies have indicated that the deal is pending necessary regulatory and statutory approvals.
Key Takeaways
- Bank of America will acquire up to 49.9% stake in Jio Credit Limited for a total investment of ₹18,268 crore (approximately $1.9 billion).
- The deal will be executed in two stages: an initial 26.5% equity interest through preferential allotment, with the stake rising to 49.9% through warrant exercise.
- Jio Credit Limited is a wholly owned NBFC subsidiary of Jio Financial Services Limited, which was demerged from Reliance Industries and listed in August 2023.
- Jio Credit had built assets under management (AUM) of ₹30,667 crore as of June 30, 2026, within just two years of commencing operations.
- Jio Financial Services operates a full-stack financial ecosystem with subsidiaries in lending, insurance, payments, and banking, plus joint ventures with BlackRock (asset management) and Allianz (insurance).
- Bank of America has operated in India since 1964 and serves more than 69 million clients in the United States, with operations in over 35 countries.
- India’s NBFC sector recorded credit growth of approximately 20% year-on-year in FY25, outpacing bank credit growth of around 12%.
- Foreign investment in India’s NBFC sector is permitted up to 100% under the automatic route for most RBI-regulated activities, requiring only post-facto reporting to the RBI.
