In a massive boost for India financial market, US banking giant Bank of America has joined hands with Mukesh Ambani Jio Financial Services. Bank of America will buy up to a 49.9% stake in Jio Credit, which is the money lending branch of Jio Financial Services. The total size of this deal is a massive ₹18,268 crore about $1.9 billion.
Under this agreement, Bank of America will first buy a 26.5% share in Jio Credit. Later, it can increase its shareholding up to 49.9% by exercising warrants. However, Jio Credit will still remain a subsidiary of Jio Financial Services, and the existing team will keep running the everyday operations.
This mega deal combines the huge digital network and local customer reach of Jio with the global banking experience and technology of Bank of America. The main goal of this big partnership is to make getting personal loans, business loans, and home loans much easier, faster, and safer for everyday Indian citizens.
Jio Credit started its operations just two years ago and has already built loans worth over ₹30,600 crore. Reliance Chairman Mukesh Ambani said that this step will remove friction in giving credit across the country. Following this announcement, shares of Jio Financial Services rose in the stock market as investors welcomed this historic move.
