Bank of America to Acquire Up to 49.9% Stake in Jio Credit
Why in the news
Bank of America agreed on August 13, 2026 to a joint venture with Jio Financial Services (JFSL), under which it will buy up to 49.9% of Jio Credit Limited. This is a large foreign investment in an Indian non-banking lender.
Key facts
- Stake: up to 49.9% in Jio Credit Limited, so JFSL keeps the majority.
- Value: about Rs 18,268 crore (roughly USD 1.9 billion).
- Governance: equal board representation for JFSL and Bank of America; the current management continues to run operations.
- Jio Credit managed assets of Rs 30,667 crore as of June 2026, mainly in secured loans such as home loans, loans against property and securities, and business loans.
How the money flows
| Step | Amount |
|---|---|
| Initial equity (26.5% stake) | Rs 6,612.90 crore |
| 7.6 crore warrants (convertible within 18 months) | Rs 11,655.3 crore |
| Total | Rs 18,268.2 crore |
About the companies
Jio Credit Limited is a wholly owned subsidiary of Jio Financial Services. Bank of America is the foreign partner buying into it.
Exam angle
- Remember the headline numbers: 49.9% final stake and 26.5% initial stake.
- A warrant is an instrument that lets the holder convert into shares later; here the window is 18 months.
- Foreign investment in NBFCs is a common banking and economy topic.