Jio Financial Services shares surged in early trade on Thursday after Bank of America (BofA) announced a strategic investment in the company’s lending subsidiary, Jio Credit. The deal marks a major expansion of Jio Financial Services’ financial ecosystem and brings one of the world’s biggest banking institutions into partnership with the Reliance-backed company.
Shares of Jio Financial Services climbed as much as 3.27% to reach an intraday high of ₹263.35 on Thursday. At 9:24 a.m., the stock was trading 0.75% higher at ₹256.90, while the benchmark BSE Sensex was down 0.22% at 77,802.
Credits: Indiablooms
Bank of America to Acquire Up to 49.9% Stake
According to an exchange filing released on Wednesday, BofA has entered into a joint venture with Jio Financial Services and will acquire up to a 49.9% stake in Jio Credit.
The total investment is worth ₹18,268 crore, or approximately $1.9 billion. The investment will be made through two routes.
BofA will invest ₹6,613 crore through a preferential allotment of equity shares, while another ₹11,655 crore will be invested through warrants. The transaction is expected to significantly strengthen Jio Credit’s capital base as the lending business continues to expand.
The partnership combines Jio Financial Services’ extensive digital ecosystem and understanding of Indian consumers with BofA’s international banking and financial services expertise.
Jio Credit’s AUM Crosses ₹30,000 Crore
The investment comes at a time when Jio Credit is rapidly expanding its digital-first lending operations.
As of June 30, 2026, Jio Credit had assets under management (AUM) of ₹30,667 crore. The company provides secured lending products across both retail and commercial segments.
Its offerings include mortgages, loans against securities, commercial finance and supply-chain finance. The growing AUM reflects the company’s expanding presence in India’s credit market and its efforts to build a technology-driven lending platform.
The fresh capital from BofA is expected to provide additional resources for expanding Jio Credit’s lending operations across India. With access to significant funding and BofA’s financial expertise, the partnership could allow Jio Credit to accelerate its growth in several lending categories.
Equal Representation on Jio Credit’s Board
Following the transaction, Jio Credit’s board will have equal representation from Jio Financial Services and Bank of America.
Despite BofA acquiring a stake of up to 49.9%, Jio Credit will continue to be consolidated as a subsidiary of Jio Financial Services. Its existing management team will also remain responsible for the company’s strategy and day-to-day operations.
This structure allows Jio Financial Services to maintain control of its lending subsidiary while bringing BofA into the business as a major strategic partner.
The arrangement could also provide Jio Credit with access to global financial expertise while allowing the company to continue operating under its existing management structure.
Jio Financial Builds a Global Financial Network
The BofA partnership is the latest addition to Jio Financial Services’ growing network of international financial partners.
The company already has partnerships involving major global institutions, including BlackRock in asset management and wealth management, as well as Allianz in insurance.
These partnerships are part of Jio Financial Services’ broader strategy to build a diversified financial services business in India.
The company is seeking to use technology, digital distribution and strategic partnerships to compete across lending, insurance, asset management and other financial services.
Credits: Rediff Money
What the Deal Means for Jio Financial
The BofA investment represents more than a capital infusion for Jio Credit. It gives Jio Financial Services a powerful global banking partner as it attempts to scale its lending business.
For investors, the immediate reaction in Jio Financial shares suggests that the market views the partnership positively. The transaction could strengthen Jio Credit’s balance sheet, support faster loan growth and provide access to BofA’s international expertise.
With Jio Credit’s AUM already above ₹30,000 crore, the new partnership could become an important catalyst for the company’s next phase of expansion. The focus will now shift toward how effectively Jio Credit deploys the fresh capital and converts its growing digital reach into sustainable lending growth.
