Jio Financial shares jump 3% as Bank of America set to acquire 50% stake in Jio Credit for Rs 18,268 crore

Jio Financial Services' shares surged by more than 3% on Thursday after the company announced that Bank of America has agreed to acquire a 49.9% stake in Jio Credit, the company's wholly-owned non-bank lending arm. The deal is valued at Rs 18,268 crore and marks a joint venture between the two entities.

Under the agreement, Bank of America will initially acquire a 26.5% equity stake in Jio Credit through a preferential allotment of equity shares. The American bank's ownership could increase to 49.9% through the exercise of warrants, provided all regulatory and statutory approvals are obtained. Jio Credit, which launched operations just two years ago, reported assets under management (AUM) of Rs 30,667 crore as of June 30, 2026.

The proposed joint venture aims to leverage Jio Financial Services' digital reach and local market knowledge with Bank of America's global financial services expertise. The companies stated that the investment will enable Bank of America to expand its presence in India's rapidly growing credit market, while providing Jio Financial Services with access to Bank of America's global reach and expertise.

This deal is part of a trend of large foreign investments in India's financial sector. Notable recent transactions include Japan's MUFG investing in Shriram Finance, Dubai-based Emirates NBD acquiring a 60% stake in RBL Bank, and Sumitomo Mitsui Financial Group investing in Yes Bank.

Jio Financial Services, which began operations as a demerger from Reliance Industries in 2023, provides various financial services such as digital lending, payments, insurance broking, and asset management. The company has recently expanded its partnerships with global firms across its business lines, including joint ventures with BlackRock for asset and wealth management, and with Allianz for insurance services.