Bank of America is expanding its international operations by investing up to $1.9 billion in Jio Credit Limited. The Charlotte-based bank will acquire an initial 26.5% stake in the consumer and business lending arm of Jio Financial Services. This ownership percentage can increase to 49.9% if the bank exercises warrants included in the definitive agreement.
The investment combines Bank of America’s global risk management capabilities with the digital infrastructure of Jio Financial. Jio Credit, which was founded two years ago, manages more than $3.2 billion in loans and financial assets. These assets include mortgages and supply chain financing delivered through digital platforms. The partnership aims to provide direct access to India’s growing digital lending sector.
Brian Moynihan, the chief executive officer of Bank of America, stated that India is a critical growth market. He noted that the investment reflects confidence in the country's future and supports the expansion of financial service access. Moynihan added that the move aligns with the bank's goal to support India's economic development.
Mukesh Ambani, the founder of Jio Financial Services, described the alliance as a significant step toward simplifying banking for people across India. Ambani said that leveraging Bank of America’s global experience will help remove barriers to credit and promote national prosperity.
Under the terms of the deal, Bank of America and Jio Financial will hold equal representation on the board of directors for Jio Credit. The existing management team will continue to oversee daily operations. The transaction is currently subject to regulatory and statutory approvals. Bank of America indicated that the investment is not expected to affect its current operations or workforce.
