Jio Financial Services Ltd (JFSL) and Bank of America Corporation (BofA) have entered into a joint venture agreement. Under the agreement, Bank of America will acquire up to a 49.9% stake in Jio Credit Ltd for around $1.9 billion, or ₹18,268 crore.
Jio Credit Limited is a subsidiary company of Jio Financial Services Ltd. Jio Financial Services Ltd. (JFSL) is a Core Investment Company, or CIC, registered with the Reserve Bank of India. It was originally incorporated as Reliance Strategic Investments Private Limited on July 22, 1999. Subsequently, the name of the Company was changed to Reliance Strategic Investments Limited and a fresh certificate of incorporation was issued on January 14, 2002. The name of the Company was further changed to ‘Jio Financial Services Limited’ (CIN: L65990MH1999PLC120918) and a fresh certificate of incorporation was issued on July 25, 2023.
The Bank of America Corporation is an American multinational bank and financial services holding company. It is the second-largest banking institution in the United States.
Deal Valuation
The transaction values Jio Credit at around 2.5 times its net worth. This is notable because Jio Credit started its operations only around two years ago and has built a significant lending business in a short period.
Partnership Between Jio Financial Services and Bank of America
The joint venture will combine Jio Financial Services’ digital reach and understanding of the Indian market with Bank of America’s global financial services experience. The two companies will focus on improving digital access, financial innovation, access to credit and risk management.
Jio Credit’s Business Growth
Jio Credit is a non-bank financial company and the lending subsidiary of Jio Financial Services. As of 30 June 2026, the company had assets under management (AUM) of ₹30,667 crore, or around $3.2 billion.
How Bank of America Will Acquire the Stake
NB Holdings, a subsidiary of Bank of America, will initially acquire 4.29 crore equity shares through a preferential issue for up to ₹6,613 crore. This will give the company a 26.50% stake in Jio Credit.
After this, NB Holdings will subscribe to 7.56 crore warrants for ₹11,655 crore. Each warrant can be converted into one equity share within 18 months.
Around 25% of the amount payable for the warrants will be paid when the warrants are subscribed to. The remaining amount will be paid when the warrants are converted into equity shares. After conversion, NB Holdings will hold 49.90% of Jio Credit’s paid-up equity share capital.
Equal Representation on Jio Credit Board
Following the transaction, the Jio Credit board will have equal representation from Jio Financial Services and Bank of America. The existing management team will continue to manage the company’s strategy and day-to-day operations. Jio Credit will also continue to be treated as a subsidiary of Jio Financial Services in its financial reporting.
Third Major Global Partnership for Jio Financial Services
The Bank of America deal is Jio Financial Services’ third major global partnership. The company already has partnerships with BlackRock for its mutual funds business and Allianz for insurance.
These partnerships bring global financial sector experience, technology, systems and processes to Jio Financial Services as it expands its presence across different areas of India’s financial services market.
Shares of Jio Financial Services closed at ₹255.00 on the BSE on 12 August 2026. The stock gained ₹2.10, or 0.83%, during the session.
