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Bank of America has entered into a definitive joint venture agreement with Jio Financial Services to acquire up to 49.9%

ICICIdirect Research 13 Aug 2026 DISCLAIMER

News: As per exchange filings, Bank of America has entered into a definitive joint venture agreement with Jio Financial Services to acquire up to 49.9% in Jio Credit Ltd, JFSL's wholly owned NBFC lending subsidiary, through a preferential allotment of equity shares and warrants. Bank of America's total investment, including equity shares and warrants, will be ₹18,268 crore (~US$1.9 billion). The partnership will combine JFSL's digital reach, Indian market expertise and customer base with Bank of America's global financial-services expertise, including governance, risk management and technology, providing Jio Credit with additional capital to support sustainable loan growth. Following the transaction, the Jio Credit Board will have equal representation from JFSL and Bank of America, while the existing management team will continue to run the NBFC and Jio Credit will remain consolidated under JFSL. Jio Credit's portfolio spans secured retail lending, including mortgages and loans against securities, as well as commercial and supply-chain finance. 

View: The partnership is strategically positive for JFSL, bringing in substantial capital and a global financial-services partner at an early stage of Jio Credit's expansion. At ₹18,268-crore investment, the deal is valuing the lending arm at ~₹36,600 crore which is ~1.4x post money book value. For parent, Jio Financial, this deal could drive valuation to the extent of 5-7%.

Impact: Positive

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