Dubai’s Emirates NBD May Acquire 51% Stake in RBL Bank in $3 Billion Deal
Dubai’s Emirates NBD May Acquire 51% Stake in RBL Bank in $3 Billion Deal
Move set to be one of India’s largest foreign direct investments in the banking sector
Dubai-based Emirates NBD Bank PJSC is close to sealing a landmark deal to acquire a 51% stake in Mumbai-headquartered RBL Bank for nearly $3 billion (₹27,000 crore), marking one of the largest foreign investments in India’s private banking space.
According to sources, Emirates NBD will infuse fresh capital at ₹295 per share, amounting to over ₹18,000 crore ($2.2 billion) in the first phase, through its Indian unit. The acquisition will give Emirates five board seats in RBL Bank, effectively making RBL its largest subsidiary outside Dubai.
Following the primary capital infusion, Emirates is expected to launch a voluntary open offer to acquire an additional 23–24% stake, worth around ₹9,000 crore, taking its total investment close to $3 billion.
RBL Bank has not officially confirmed the deal but stated that it “routinely explores opportunities aimed at enhancing shareholder value.” On Wednesday, RBL’s shares rose 1.85% to ₹296.95 on the BSE in intraday trade.
The deal will be executed through Emirates NBD Bank PJSC, which recently received in-principle approval from the Reserve Bank of India to convert its Indian operations into a wholly owned subsidiary (WOS) — a move that could pave the way for a potential merger between RBL Bank and Emirates NBD’s Indian arm.
Negotiations between the two banks began about six months ago, paused mid-year, and resumed in August after clarity emerged regarding the proposed transaction structure. Once finalized, the merger would mark a significant step in Emirates NBD’s expansion strategy and follow Sumitomo Mitsui Banking Corporation’s recent investment in Yes Bank, underlining renewed global interest in India’s banking sector.
Disclaimer: The information above is based on sources familiar with the matter. Neither Emirates NBD nor RBL Bank has made an official announcement regarding the deal at the time of publication.
