Jio Financial Services, part of Reliance Industries, is selling a nearly 50% stake in its non-bank financial company subsidiary, Jio Credit, to Bank of America for $1.9 billion, aiming to strengthen its secured lending portfolio and accelerate growth in India’s competitive NBFC sector.
- Bank of America to acquire up to 49.9% stake through equity and warrants
- Jio Credit's loan book centers on secured lending, including SMEs and corporates
- Deal positions Jio Financial for growth amid rising NBFC sector competition
What happened
Jio Financial Services has entered into a definitive agreement with Bank of America, allowing the US financial giant to acquire up to a 49.9% stake in Jio Credit Limited, Jio’s wholly owned NBFC subsidiary. The deal includes an initial equity purchase of 26.5% for Rs 6,612.9 crore, complemented by 7.6 crore warrants valued at Rs 11,655.3 crore that can be converted into shares within 18 months, driving the total holding to nearly half of Jio Credit.
This investment structure enables Bank of America to become a joint venture partner in Jio Credit’s secured lending operations. Jio Credit had assets under management of Rs 30,667 crore as of June 2026, with loan disbursements in the first quarter of FY27 amounting to Rs 11,252 crore. The company’s focus remains on secured lending products such as home loans, loans against property and securities, and business loans to SMEs and corporates.
Why it matters
Jio Credit’s emphasis on secured lending sets it apart from many Indian NBFCs that primarily deal in unsecured loans, allowing it to build a critically scaled portfolio with potentially lower risk. The entry of Bank of America as a strategic partner is expected to provide additional capital, strengthen governance, and fuel growth into both secured and eventually unsecured segments.
What to watch next
Market observers will be keen to track how quickly Bank of America exercises its warrants to maximize its stake in Jio Credit, as well as any strategic shifts Jio Financial undertakes toward unsecured credit offerings after consolidating its secured lending base. Monitoring loan growth rates, asset quality, and new product launches will provide insight into the JV’s competitive positioning.