Mukesh Ambani's Jio Financial Services and Bank of America have signed a business agreement. Under this, US banking company will buy up to 49.9% stake in Jio Credit. The total value of this deal is Rs 18,268 crore, i.e. about 1.9 billion US dollars. Jio Credit Limited is a wholly owned non-banking financial company of Jio Financial Services. According to the joint statement, Jio Credit is among the fastest growing non-banking financial companies of India.
Both companies said that this joint venture agreement will combine Jio Financial Services' digital reach and understanding of the Indian market with Bank of America's global financial services expertise.
Mukesh Ambani's Jio Financial Services Limited and Bank of America have signed an agreement for joint venture in Jio Credit Limited. The stock market was informed about this on Wednesday. After the deal, Jio Financial Services and Bank of America will have an important partnership in Jio Credit.
Under this, Bank of America will buy up to 49.9 percent stake in Jio Credit for about Rs 18,268 crore. In other words, Bank of America is going to invest heavily in this company of Ambani. Jio Financial Services Limited informed in its exchange filing that it and Bank of America Corporation (BofA) have entered into a definitive agreement.
Jio Credit has expanded its loan business rapidly in just two years of its operations. Jio Credit has so far focused on small businesses and retail customers and has been providing products like home loans. According to the companies, this partnership will provide additional capital to Jio Credit to expand the loan business in a sustainable manner.
Mukesh Ambani's Jio Financial said in a press release that through this venture, both the companies have the same objective – to improve the financial life of customers through excellent digital access, innovation, access to credit and strong risk management. According to the joint statement, Jio Credit is among the fastest growing non-banking financial companies of India.
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