MUMBAI, India: Bank of America will acquire up to a 49.9% stake in Jio Financial Services' non-bank lending arm, Jio Credit, in a deal worth 182.68 billion rupees ($1.92 billion), expanding the U.S. lender's presence in India's fast-growing financial sector.

The deal follows a series of major foreign investments in Indian banks and non-bank lenders, amid strong demand for credit and low loan delinquency rates. Recent transactions include Japan's MUFG investing in Shriram Finance, Dubai-based Emirates NBD acquiring a 60% stake in RBL Bank, and Sumitomo Mitsui Financial Group investing in Yes Bank.

Bank of America will become a joint venture partner in Jio Credit through a preferential allotment of equity shares and warrants, the two companies said Wednesday.

The transaction initially gives Bank of America a 26.5% stake in Jio Credit, with its holding potentially increasing to 49.9% after the warrants are exercised.

As part of the agreement, Jio Credit will issue shares worth up to 66.13 billion rupees and warrants worth up to 116.55 billion rupees to Bank of America."By combining Jio Financial Services' scale, local expertise and customer base with Bank of America's global reach, digital experience and close to 250 years of leadership in banking, we can help expand access to financial services and support India's continued economic growth," Bank of America CEO Brian Moynihan said.

Jio Credit, one of India's fastest-growing non-banking financial companies, had assets under management of more than $3 billion at the end of June after just two years of operations.

Bank of America said the investment will provide Jio Credit with capital to support its growth while giving it access to the expertise of a global financial institution.

Non-bank credit in India is expanding at more than 14% across segments including personal loans, gold loans and small-business credit.

Jio Financial, which was listed in 2023 following its demerger from Reliance Industries, operates businesses including digital lending, payments, insurance broking and asset management services.

The company has pursued joint ventures with global firms across several business lines. It offers asset and wealth management services through its partnership with BlackRock and has also formed a joint venture with Germany's Allianz to provide general and health insurance.