Jio Financial Services shares rose approximately 3% after Bank of America agreed to acquire up to a 49.9% stake in its lending arm, Jio Credit, through a Rs 18,268 crore joint venture deal.

Under the terms of the agreement, the US-based bank will initially acquire a 26.5% stake in Jio Credit. The holding could subsequently increase to 49.9% through the exercise of warrants, subject to receipt of necessary regulatory approvals. The deal size implies a total enterprise valuation of roughly Rs 36,600 crore for Jio Credit, placing it among the more richly valued standalone digital lending platforms in India.

Jio Credit reported assets under management (AUM) of Rs 30,667 crore as of June 2026.

Jio Financial Services, a non-banking financial company (NBFC), was demerged from Reliance Industries in 2023 and listed on Indian stock exchanges. The company operates across consumer lending, digital financial services, and insurance distribution. Its lending arm, Jio Credit, focuses on providing credit products as part of the broader Jio Financial ecosystem. That ecosystem draws on Reliance's sprawling customer base across telecom, retail, and digital platforms, which gives Jio Credit a large addressable market for cross-selling credit products to existing Jio users.

The transaction represents one of the largest investments by a foreign financial institution in an Indian NBFC in recent years. India's financial services sector has attracted significant global interest, driven by growing credit penetration and the expansion of digital lending platforms. Foreign investment in Indian NBFCs requires approval from the Reserve Bank of India, which has progressively eased ownership rules for overseas investors in the sector. The deal also comes as global banks have increasingly sought entry into India's underpenetrated credit market through partnerships with domestic players rather than building standalone operations.

Source: Economic Times Markets