Jio Financial shares in focus: BofA to acquire 49.9% stake in Jio Credit for ₹18,268 crore

Shares of Jio Financial Services (JFSL), the financial services arm of Reliance Industries (RIL), will be in the spotlight on Thursday, August 13, after Bank of America (BofA) on Wednesday announced plans to acquire a 49.9% stake in the Mukesh Ambani-promoted company's lending arm, Jio Credit, for $1.9 billion or ₹18,268 crore.

BofA and JFSL have entered into a joint venture agreement under which BofA will pick up shares through a preferential issue and warrants, according to an exchange filing.

The venture will combine JFSL's digital reach and knowledge of the Indian market with BofA's global financial services expertise, it said.

Executives maintained that this is a financial investment by BofA in a key market and should not be construed as BofA entering retail lending.

The two-year-old Jio Credit has focused on the small businesses segment and retail borrowers with products like home loans till now.

JCL is among India's fastest-growing NBFCs, having built assets under management (AUM) of ₹30,667 crore as of June 30, 2026, within just two years of operations, a joint statement said.

NB Holdings, a BofA subsidiary, will pick up 4.29 crore equity shares for cash through a preferential issue for up to ₹6,613 crore to pick a 26.50% stake, and follow it up by subscribing to 7.56 crore warrants for a consideration of ₹11,655 crore. Each warrant will be convertible into an equity share within 18 months.

25% of the consideration payable for the warrants will have to be paid at the time of subscription to the warrants and the balance at the time of conversion, it said, adding that post conversion of warrants, NB Holdings, USA will hold 49.90% of the paid-up equity share capital of Jio Credit.

Details shareholders need to know

• The investment will allow BofA to expand its participation in the rapidly growing Indian market, the world’s fastest-growing major economy at double the global growth rate, while doing so with a partner that has local expertise and differentiated capabilities, the press release by JFSL said.

• The investment of up to ₹18,268 crore (~$1.9 billion USD) will be made through a preferential allotment of equity shares and warrants. The transaction initially gives Bank of America a 26.5% equity interest in JCL, which can go up to 49.9% upon exercise of the warrants. The transaction is subject to regulatory and statutory approvals.

• Pursuant to the transaction, JCL’s Board of Directors will have equal representation from both JFSL and BofA. The existing management team of JCL will continue driving the strategy and operations at the NBFC, and JCL will continue to be consolidated as a subsidiary in JFSL’s financial reporting.

JV Rationale

As India’s financial sector expands alongside the nation’s robust economic growth, the partnership positions the venture to capitalise on emerging growth opportunities in the industry. "Beyond securing long-term capital for sustainable loan growth, the collaboration provides the venture with access to BofA’s expertise related to financial services, governance, risk management, and technology," JFSL said in its press release.

About Jio Credit Limited

Jio Credit Limited (JCL, formerly known as Jio Finance Limited), a wholly owned subsidiary of JFSL, is a digital-native NBFC.

JCL, as per the company, bridges the gap between traditional finance and modern accessibility through a full spectrum of secured credit — from retail assets like mortgages and loans against securities to commercial and supply chain finance.

By anchoring its diverse portfolio in advanced risk frameworks, JCL delivers resilient, high-quality growth for both individuals and enterprises.

About Jio Financial Services Limited

JFSL is a Core Investment Company (CIC) registered with the Reserve Bank of India.

As a new-age institution, JFSL operates a full-stack financial services ecosystem through customer-facing subsidiaries, including Jio Credit Limited, Jio Insurance Broking Limited, Jio Payment Solutions Limited, Jio Leasing Services Limited, Jio Finance Platform and Service Limited, and Jio Payments Bank Limited.

Through a 50:50 joint venture with BlackRock, JFSL offers Mutual Funds and SIFs in India through Jio BlackRock Asset Management Private Limited, and wealth management through Jio BlackRock Investment Advisers Private Limited.

The JV with BlackRock also proposes to offer broking services through Jio BlackRock Broking Private Limited.

What top officials said

"Our country’s progress toward becoming Viksit Bharat by 2047 demands a financial ecosystem built on scale, trust, and inclusivity. Central to this journey is the democratization of responsible credit — characterised by lower costs for the customer, absolute transparency, and expanding access to capital as our economy grows. Jio Financial Services is committed to making finance more seamless and simpler for Indians than ever before, leveraging new technology and anchored in the highest standards of governance."

Ambani added, "Our strategic partnership with Bank of America is a pivotal milestone in this mission. By combining our digital reach with Bank of America’s global pedigree, we will eliminate friction in credit delivery for all Indians, empowering them to chart a prosperous and inclusive path forward for the entire nation.”

“India is one of the world’s most important growth markets, and this investment reflects our confidence in its future, a market we know well and have supported for decades. We are excited to become a partner with Jio Financial Services, which has achieved remarkable scale in a short period of time, growing to more than $3 billion in assets under management in just two years."

Moynihan added, "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.”