Dubai’s Emirates NBD to acquire 60% stake in India’s RBL Bank for $3 billion
As per SEBI rules, ENBD will offer up to 26% stake to RBL Bank shareholders
Dubai: Emirates NBD is set to acquire a controlling stake in RBL Bank through a primary infusion of around $3 billion (~Rs268.5 billion), marking the largest foreign direct investment and equity raise in India’s banking sector.
The boards of ENBD and RBL Bank approved the deal on Saturday, under which ENBD will take up to 60% stake via a preferential issue, subject to regulatory approvals.
As per SEBI’s Takeover Regulations, ENBD will also launch an open offer for up to 26% of RBL Bank’s public shares.
The deal sets multiple records for India’s financial sector:
Largest FDI in Indian banking
Largest equity fund raise in the sector
Largest preferential issue by a listed company in India
First foreign majority acquisition of a profitable Indian bank
As part of the transaction, ENBD’s India branches will be merged with RBL Bank following the preferential issuance, in line with RBI guidelines.
Strategic rationale
The investment reflects ENBD’s long-term commitment to India and its confidence in the country’s fast-growing financial sector. The partnership combines ENBD’s strong regional presence and capital base with RBL Bank’s extensive pan-India network, boosting its Tier-1 capital ratio, deposit franchise, and branch expansion plans.
Leadership perspectives
ENBD Group CEO Shayne Nelson described the investment as a reflection of the bank’s confidence in India’s growing economy.
“Our investment in RBL Bank is a testament to our confidence in India’s vibrant economy. This strategic alignment brings together RBL Bank’s domestic franchise with ENBD’s regional reach, creating a unique platform for growth and innovation,” said Shayne Nelson.
RBL Bank Chairman Chandan Sinha welcomed Emirates NBD as a strategic shareholder, saying the move “reflects global confidence in India’s banking sector and RBL Bank’s potential. "Together, we will strengthen our capabilities and build a future-ready institution,” added Chandan Sinha.
RBL Bank CEO R Subramaniakumar called the partnership “a major milestone” and said it provides “a strong capital base and will create synergies to deliver superior value to our stakeholders.”
The transaction combines ENBD’s international expertise with RBL Bank’s established domestic presence, setting the stage for long-term growth and innovation in India’s banking sector.
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