Emirates NBD to Acquire Majority Stake in RBL Bank in Landmark Deal
MUMBAI/DUBAI – Emirates NBD, a leading banking group in the Middle East, has announced a definitive agreement to acquire a 60% stake in RBL Bank, an Indian private sector bank, marking the first instance of a foreign bank taking a majority ownership position in a profitable Indian bank. The move signals increasing foreign investment in India’s rapidly expanding financial sector and strengthens economic ties between India and the United Arab Emirates.
The investment, made through a preferential issue, is subject to regulatory approvals from both Indian and UAE authorities, as well as customary closing conditions. Following the preferential issuance, Emirates NBD will launch a mandatory open offer to purchase an additional 26% stake from RBL Bank’s public shareholders, in compliance with regulations set forth by the Securities and Exchange Board of India (SEBI). Simultaneously, the boards of both banks have approved a merger of Emirates NBD’s Indian branches with RBL Bank, pending implementation of the preferential issue and subject to Reserve Bank of India (RBI) guidelines.
This acquisition underscores Emirates NBD’s confidence in the growth potential of the Indian financial market and its strategic importance within the broader India-Middle East-Europe economic corridor. The partnership is anticipated to foster greater economic collaboration between India and the UAE, building on existing trade and investment relationships. The combined entity is expected to leverage synergies and expand its reach within the Indian subcontinent.
