Bank of America takes 49.9% stake in Jio Credit for $1.9 billion

Bank of America is betting nearly $2 billion that India’s consumer lending market is worth showing up for. The US banking giant announced it will acquire up to a 49.9% stake in Jio Credit Limited, a non-banking financial company (NBFC) under Mukesh Ambani’s Jio Financial Services umbrella, in a deal valued at up to 18,268 crore rupees, or roughly $1.9 billion.

The transaction won’t happen all at once. BofA will start by picking up a 26.5% stake in JCL, with the option to ratchet that up to 49.9% through warrant exercises down the road. The full expansion is contingent on regulatory approvals, which in India’s financial sector can be a process unto themselves.

How the deal is structured

The joint venture will feature equal board representation from both BofA and Jio Financial Services Limited (JFSL).

JCL isn’t starting from zero, either. As of March 31, 2025, the company’s assets under management stood at 10,094 crore rupees. And JFSL apparently wanted to fatten up the operation before inviting its American partner to the table: the parent company injected approximately 2,000 crore rupees into JCL earlier in August, just days before the BofA announcement.

Why India, why now

JCL is specifically focused on consumer and merchant lending products. For JFSL, which was formed through a demerger from Reliance Industries, the partnership brings institutional lending expertise from one of America’s largest banks. JFSL has positioned itself as a Core Investment Company, a regulatory classification that allows it to hold stakes in group companies and channel capital across its financial services portfolio.

What this means for the competitive landscape

The $1.9 billion price tag alone sends a signal. It values JCL at a significant premium to its current AUM, which suggests BofA is pricing in substantial future growth rather than paying for what the business looks like today.

The 49.9% ceiling on BofA’s stake appears designed to stay on the right side of foreign ownership sensitivities. The equal board representation structure reinforces that this is being positioned as a partnership of equals rather than an acquisition.

The warrant structure gives BofA a built-in option to increase its commitment if early results are promising, or to stay at the 26.5% level if the market proves trickier than expected.

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