Emirates NBD Bank and RBL Bank Limited have approved entering into definitive agreements for Emirates NBD to acquire a controlling stake in RBL Bank through a primary infusion of approximately $3bn (INR26,850 crore).
The proposed transaction marks a major milestone for India’s financial services sector, representing:
- The largest-ever foreign direct investment in the Indian financial services sector
- The largest-ever equity fundraise in the Indian banking sector
- The largest fundraise via preferential issuance by a listed company in India
- The first acquisition of a majority interest in a profitable Indian bank by a foreign bank
Landmark foreign investment
Emirates NBD will make its investment through a preferential issue of up to 60 per cent, subject to regulatory approvals and customary closing conditions.
As part of the transaction, Emirates NBD will also make a mandatory open offer to purchase up to 26 per cent of RBL Bank’s public shareholding, in accordance with SEBI’s Takeover Regulations.
Both boards also approved the amalgamation of Emirates NBD’s India branches with and into RBL Bank, as required by Reserve Bank of India (RBI) guidelines. The merger will be completed after the execution of the preferential issuance.
This investment reinforces Emirates NBD’s long-term commitment to the Indian market and underscores India’s strategic importance within the India–Middle East–Europe Economic Corridor (IMEC).
UAE–India
The transaction combines Emirates NBD’s strong capital base and regional franchise with RBL Bank’s extensive distribution network across India.
The infusion will strengthen RBL Bank’s balance sheet, enhance its Tier-1 capital ratio, and provide long-term growth capital, enabling the bank to deepen its deposit franchise and expand through calibrated branch network growth.
Shayne Nelson, Group CEO of Emirates NBD, said: “Our investment in RBL Bank is a testament to our confidence in India’s vibrant and expanding economy.
“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.
“An enhanced presence in India for ENBD, through a well-established business like RBL Bank, would further complement ENBD’s service to customers operating throughout the MENATSA region.
“We envisage to support Indian businesses, trade, projects, and other opportunities throughout the region leveraging our network.”
Emirates NBD strategic partners
Chandan Sinha, Chairman of RBL Bank, said: “This partnership marks a defining moment in RBL Bank’s journey of transformation. The entry of Emirates NBD as our strategic shareholder reflects the global confidence in India’s banking sector and RBL Bank’s potential within it.
“Together, we are poised to strengthen our capabilities, deepen our customer franchise, and build a future-ready institution anchored in trust, governance, and growth.”
Strengthening bilateral financial ties
RBL Bank will be able to capitalise on Emirates NBD’s strong credit rating and relationships with companies, banks, and financial institutions across India.
Conversely, Emirates NBD will benefit from the enhanced market presence provided by RBL Bank’s pan-India network and growing business franchise.
The investment will further deepen UAE–India financial and trade relations, building on decades of bilateral cooperation and expanding cross-border capital flows.
