In a move that mirrors similar high-stakes investments in India’s rapidly growing credit sector, Bank of America has agreed to buy a 49.9% stake in Jio’s lending arm. The second largest bank in the US will get this agreed stake by means of shares and warrants in Jio Credit, according to a statement released today.
The Charlotte, North Carolina based bank is the second largest lender in the US, with roughly $3.5 trillion in total assets, serving about 70 million clients, and employs over 210,000 people across multiple countries. BofA doesn’t have a large India presence in the banking space, even though it does operate offices in the country.
“India is one of the world’s most important growth markets, and this investment reflects our confidence in its future, a market we know well and have supported for decades,” Bank of America Chief Executive Officer Brian Moynihan said in the statement.
Post regulatory clearances, Jio Credit Limited’s Board of Directors will have equal representation from both Jio and Bank of America. The existing management team of Jio Credit will continue driving the strategy and operations at the NBFC and J C LJCL will continue to be consolidated as a subsidiary in Jio Financial Services’ financial reporting.