Bank of America announced an investment of up to $1.92 billion for a 49.9 percent stake in Jio Credit, a non-bank lending division of Jio Financial Services. The agreement, announced Wednesday, establishes BofA as a joint venture partner in the Indian financial market.
The deal is structured through a preferential allotment of equity shares and warrants, giving Bank of America an initial 26.5 percent stake in Jio Credit. That ownership can rise to 49.9 percent once Bank of America exercises the warrants.
The companies said the investment gives Bank of America direct access to India's growing financial sector, pairing BofA's global reach with Jio Financial Services' local expertise.
The total investment of up to $1.92 billion translates to approximately 182.68 billion Indian rupees, based on an exchange rate of 95.33 rupees to the dollar.
The deal is among the largest recent foreign investments in Indian financial services. Japan has injected capital into Shriram Finance, and Dubai-based Emirates NBD acquired a 60 percent stake in RBL Bank, reflecting a pattern of international banks seeking footholds in the Indian market.
Jio Credit operates as a non-banking financial company, a segment that extends credit to consumers and businesses outside traditional banks. For Bank of America, the joint venture structure reduces the regulatory and operational complexity of independent entry into the Indian market while offering a structured path to increase ownership as the venture scales.
