Jio Financial Sells Nearly Half of Lending Arm to Bank of America

Jio Financial Services, the fintech arm of Reliance Industries, has agreed to sell a 49.9% stake in its non-banking financial company (NBFC) subsidiary, Jio Credit, to Bank of America for Rs 18,268.2 crore, equivalent to approximately $1.9 billion.

The transaction will be structured through a combination of equity and warrants. Bank of America will initially acquire a 26.5% stake in Jio Credit for Rs 6,612.9 crore. It will also receive warrants worth up to Rs 11,655.3 crore, convertible into equity within 18 months. Upon full conversion, Bank of America's shareholding will reach 49.9%.

Jio Credit managed assets worth Rs 30,667 crore as of June 2026. Unlike many other NBFC lenders in India, Jio Credit has focused its loan book on secured lending, including home loans and business loans. In the first quarter of FY27, the company disbursed loans totaling Rs 11,252 crore.

The deal comes amid increasing competition in India's lending sector. Other major players, including Bharti Airtel and MobiKwik, have also been expanding their financial services and obtaining NBFC licenses.