Bank of America has agreed to invest up to ₹182.68 billion ($1.9 billion) in Jio Credit, taking an initial 26.5% interest that could rise to 49.9% if it converts all of the warrants included in the transaction. Jio Credit’s assets under management reached ₹306.67 billion at June 30, 2026, up 163% from a year earlier.
Bank of America and Jio Financial Services announced the definitive agreement on August 12.
The investment will be made through NB Holdings Corporation, a wholly owned Bank of America subsidiary. Jio Credit is currently wholly owned by Jio Financial Services and operates as a nonbank financial company regulated by the Reserve Bank of India.
The transaction remains subject to applicable regulatory and statutory approvals. The companies did not provide a closing date.
The initial stake will be 26.5%
Under the stock-exchange filing, NB Holdings will subscribe for up to 42.93 million newly issued Jio Credit shares for a total of up to ₹66.13 billion.
Those shares will give Bank of America a 26.5% interest in Jio Credit after the initial issue.
The agreement also covers up to 75.66 million warrants with a total value of ₹116.55 billion. A warrant gives an investor the right to acquire a share later under agreed terms.
Each warrant can be converted into one fully paid Jio Credit share within 18 months of its allotment. Bank of America will pay 25% of the warrant consideration when the warrants are issued, with the remaining 75% payable when they are converted.
If all the warrants are converted, Bank of America’s interest will increase to 49.9%. The headline investment of $1.9 billion is therefore the maximum potential amount and will not all be paid at the initial allotment.
At the maximum investment and ownership level, the transaction implies an equity value of approximately $3.8 billion for Jio Credit, according to a Reuters calculation. The companies did not publish their own valuation figure.
Jio Financial will retain control
Jio Credit’s board will have equal representation from Bank of America and Jio Financial Services after the transaction.
However, equal board representation does not mean equal ownership. Even after full warrant conversion, Bank of America’s interest would stop at 49.9%, leaving Jio Financial Services with the majority holding.
Jio Credit’s existing management team will continue to oversee its strategy and operations. Jio Financial also said the lender will continue to be consolidated as a subsidiary in its financial statements.
This means Jio Credit’s assets, liabilities, income and expenses will remain included in Jio Financial’s consolidated accounts, subject to the accounting treatment applicable after completion.
Jio Credit’s assets have more than doubled
Jio Credit has expanded rapidly since beginning operations approximately two years ago.
Its gross assets under management reached ₹306.67 billion during the quarter ended June 30, up from ₹116.65 billion a year earlier. For a lender, assets under management broadly indicate the value of loans and other credit assets it manages.
Quarterly disbursements increased 173% year over year to ₹112.52 billion, according to Jio Financial’s latest earnings presentation.
Mortgages accounted for 45.4% of Jio Credit’s assets under management at the end of June. Corporate and small and medium-sized business loans accounted for 44.2%, while retail loans against securities represented 10.4%.
Net interest income, which is the difference between interest earned and funding costs, rose 118% year over year to ₹2.57 billion during the quarter.
Profit after tax increased 113% to ₹960 million. These figures were reported by Jio Financial and have not been independently audited as full-year results.
Bank of America gains access to an established lender
The structure gives Bank of America a large economic interest and board representation in an Indian lender that already has products, customers and a growing loan portfolio.
For Jio Credit, the investment provides additional capital that can be used to expand lending. The companies also said the business will gain access to Bank of America’s experience in governance, risk management, technology and financial services.
“India is one of the world’s most important growth markets,” Bank of America Chair and Chief Executive Brian Moynihan said.
He said the partnership would combine Jio Financial’s local reach and customer base with Bank of America’s global and digital banking experience.
The companies have not announced how much of the new capital will be allocated to mortgages, corporate lending or other products. They have also not published new targets for loan growth, revenue or profit.
Jio Financial is repeating its partnership model
The agreement extends Jio Financial’s strategy of working with large international financial institutions rather than building every business alone.
Jio Financial operates 50:50 asset and wealth-management ventures with BlackRock. It has also established 50:50 reinsurance and general and health-insurance ventures with Allianz, while the companies are separately examining opportunities in life insurance.
The Bank of America structure is different. Bank of America can own up to 49.9% of Jio Credit, but Jio Financial will retain the majority interest and continue consolidating the lender.
The immediate milestones are regulatory approval and the initial share and warrant allotment. Any increase from 26.5% to 49.9% will depend on Bank of America converting the warrants within the permitted 18-month period.
