Bank Of America To Buy 49.9% Stake In Jio Financial Services’ NBFC Arm For $1.9 Bn
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Bank of America’s wholly-owned subsidiary NB Holdings Corporation has signed a definitive joint venture (JV) agreement with Jio Financial Services (JFS) to invest up to ₹18,268.2 Cr ($1.9 Bn) in the latter’s NBFC subsidiary, Jio Credit.
After receiving regulatory nods, the transaction would see the US-based bank acquire up to a 49.9% stake in Jio Credit.
As per the terms of the agreement, NB Holdings will initially acquire a 26.5% stake in the company for ₹6,612.9 Cr via preferential allotment of equity shares. It will also be allotted up to 7.56 Cr convertible warrants for ₹11,655.3 Cr which can be converted into equity within 18 months to raise its total equity holding in Jio Credit to 49.9%.
Jio Credit’s existing management team will continue to lead operations and strategy, and the company will remain consolidated as a subsidiary under JFS’ financial reporting. But, both Bank of America and JFS will have equal board representation.
“By combining Jio Financial Services’ scale, local expertise and customer base with Bank of America’s global reach, digital experience and close to 250 years of leadership in banking, we can help expand access to financial services and support India’s continued economic growth,” said Brian Moynihan, Bank of America’s CEO and chairperson.
“By combining our digital reach with Bank of America’s global pedigree, we will eliminate friction in credit delivery for all Indians,” added founder Mukesh Ambani.
This adds on to JFS’ strategy of partnering with multi-national players to enhance the scale of its fintech verticals.
Recently, the company partnered with global asset manager BlackRock to set up 50:50 joint ventures to offer mutual funds, wealth management, and brokerage services.
Besides, JFS and German insurance major Allianz Group also formed a similar JV to provide reinsurance services in India, incorporating Allianz Jio Reinsurance in September 2025, and Jio Allianz General Insurance to operate a general insurance business in India in May 2026.
On the financial front, JFS’ net profit more than doubled YoY to hit ₹830.3 Cr in Q1 FY27, while its operating revenue crossed the ₹2,000 Cr mark.
During the quarter, JFS’ NBFC arm saw its gross disbursements zoom 173% YoY to ₹11,252 Cr. Gross assets under management (AUM) also jumped 163% YoY to ₹30,667 Cr, while borrowings expanded 227% to ₹28,120 Cr as the company continued to scale its lending book.
Net interest income (NII) climbed 118% YoY to ₹257 Cr, while profit rose 113% to ₹96 Cr.
Shares of JFS ended today’s trading session 0.83% higher at ₹255 apiece on the BSE.
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