Today's Edition
A. SREENIVASA REDDY (ABU DHABI)
Emirates NBD announced that it will acquire a majority stake in India’s RBL Bank through a primary infusion of about $3 billion (Rs268.5 billion) — marking the largest-ever foreign direct investment in India’s financial services sector and the biggest equity fundraise by an Indian bank to date.
According to a joint statement issued by Emirates NBD and RBL Bank, the transaction involves a preferential allotment of shares that will give Emirates NBD up to a 60% stake in RBL Bank, along with a mandatory open offer to acquire an additional 26% from public shareholders in line with Indian takeover regulations.
The agreement also includes the amalgamation of Emirates NBD’s three Indian branches in Mumbai, Gurugram and Chennai with RBL Bank, once approvals are obtained from the Reserve Bank of India (RBI). Emirates NBD said the investment reflects its confidence in India’s fast-growing financial sector and underscores India’s importance within the India–Middle East–Europe Economic Corridor (IMEC).
“Our investment in RBL Bank is a testament to our confidence in India’s vibrant and expanding economy,” said Shayne Nelson, Group CEO of Emirates NBD.
“This strategic alignment brings together RBL Bank’s growing domestic franchise with Emirates NBD’s regional reach and financial expertise, creating a unique platform for growth and innovation.”
RBL Bank Chairman Chandan Sinha said the partnership marks a defining moment in the bank’s transformation journey and reflects “global confidence in India’s banking sector and in RBL Bank’s potential within it.”
R. Subramaniakumar, Managing Director and CEO of RBL Bank, described the deal as a “significant milestone” that secures a strong and globally respected anchor shareholder. “This partnership provides a solid capital base for our future. We are excited about the synergies this alliance will create and are confident that our combined strengths will deliver superior value to all stakeholders,” he said.
The statement noted that the capital infusion will substantially strengthen RBL Bank’s balance sheet, improve its Tier-1 capital ratio, and provide long-term growth capital to expand its deposit base and branch network.
RBL Bank, which serves around 15 million customers, operates 564 branches, 1,347 business correspondent outlets, and 415 ATMs across India.
In the quarter ended September 30, 2025, RBL Bank reported a net profit of Rs 1.79 billion.
Net interest income rose 5% quarter-on-quarter to Rs 15.51 billion, while core fee income grew 17% to Rs 9.26 billion. The bank’s operating profit increased 4% to Rs 7.28 billion. Total advances crossed Rs 1 trillion, up 14% year-on-year, while total deposits stood at Rs 1.17 trillion, reflecting 8% annual growth.
The bank’s gross non-performing asset (GNPA) ratio improved to 2.32%, and the net NPA ratio stood at 0.57%, showing continued improvement in asset quality. Its capital adequacy ratio was 15.02%, while the liquidity coverage ratio averaged 127%, indicating a robust balance sheet position.
Indian media reports noted that the $3 billion investment could raise RBL Bank’s net worth from around Rs 180 billion to more than Rs 420 billion, significantly strengthening its capital base. Its shares were trading at Rs 299.50 when markets closed on Friday and could see a quantum jump when trading opens on Monday.
Analysts said the partnership will enable the Indian bank to accelerate lending growth, enhance digital capabilities and reinforce governance standards under Emirates NBD’s oversight.
For Emirates NBD, the acquisition represents a strategic foothold in one of the world’s fastest-growing banking markets.
Upon completion, Emirates NBD will become the promoter of RBL Bank, marking the first acquisition of a majority interest in a profitable Indian bank by a foreign institution. As of now, RBL Bank does not have a promoter and is owned by the public, mutual funds, and domestic as well as foreign institutional investors.
