Jio Financial Services Ltd. gained almost 3% in early morning trading after Bank of America (BofA) announced an investment of up to ₹18,268 crore to acquire 49.9% of the company’s wholly owned lending arm Jio Credit. Jio Financial’s deal is the first big tie up with a US bank to get the bank.
At 9:24 a.m. Jio Financial Services shares were up 0.75%, at ₹256.90, down from the high of ₹256.90 on the day. On the other hand, BSE Sensex was down 0.22% at 77,802; the stock is still relative to the stock in the morning session.
BofA will initially own a 26.5% stake in Jio Credit and may acquire shares up to 49.9% through warrants and then the transaction would be completed through the preferential issuance of equity shares and warrants and requires approval from regulators and authorities.
The investment is about ₹6,613 crore in equity shares and ₹11,655 crore in warrants. The transaction has value of ₹36,600 crore after the investment if completed. Jio Financial will now have a big global banking institution in the centre of its rapidly expanding digital lending business.
Jio Credit has been scaling since its launch. Jio Financial’s lending arm’s assets under management in FY26 rose to ₹25,711 crore and the AUM reached ₹30,667 crore by June 30, 2026. The company is positioning Jio Credit as a digital-first lending platform that serves India’s increasing consumer and other types of credit.
The deal also fits into Jio Financial’s broader strategy for a more diversified financial-services ecosystem in which the company is already involved in lending, payments, investment and insurance businesses and has partnerships with global financial institutions such as BlackRock. And BofA’s investment might give Jio Credit more capital, global knowledge and risk management expertise to help it grow.
Bank of America’s acquisition will have an even greater presence in India’s rapidly developing financial services sector. The US banking giant is looking to leverage its global banking experience and Jio’s digital ecosystem and local market reach, the company said.
The sharp market reaction thus speaks to more than just the size of the investment. Investors are also seeing if the partnership will accelerate Jio Financial from a new financial-services platform into a major player in India’s lending market.
But the deal is not complete and still under review. Investors will have to monitor Jio Financial’s lending growth, asset quality, profitability and the execution of the partnership in the coming quarters.
With BofA potentially investing ₹18,268 crore for up to 49.9% of Jio Credit, the agreement represents one of the highest-profile foreign investments in India’s NBFC sector, and could be an important step in Jio Financial’s expansion.
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