In a landmark development for India’s financial services sector, Emirates NBD Bank (P.J.S.C.) (“ENBD”), one of the Middle East’s leading banking groups, and RBL Bank Limited (“RBL Bank”) have announced that their respective Boards of Directors have approved definitive agreements for ENBD to acquire a controlling stake in RBL Bank through a primary capital infusion of approximately USD 3 billion (₹26,850 crore).
The transaction represents a historic milestone as:
- The largest-ever foreign direct investment (FDI) in India’s financial services sector,
- The largest-ever equity capital raise in the Indian banking industry,
- The largest preferential share issuance by a listed company in India, and
- The first acquisition of a majority interest in a profitable Indian bank by a foreign bank.
Under the proposed terms, ENBD will acquire up to 60% stake in RBL Bank through a preferential issue, subject to regulatory and statutory approvals, including from the Reserve Bank of India (RBI) and the Competition Commission of India (CCI). In compliance with SEBI’s Takeover Regulations, ENBD will also launch a mandatory open offer to purchase up to 26% of RBL Bank’s shares from public shareholders.
Additionally, the Boards of both banks have approved the amalgamation of ENBD’s India branches into RBL Bank, aligning with RBI’s framework for foreign bank investments. The merger is expected to be completed following the preferential share allotment.
This transaction marks a major step in India–UAE financial collaboration, reinforcing India’s strategic role within the India–Middle East–Europe Economic Corridor (IMEC) and underscoring global investor confidence in India’s rapidly growing banking ecosystem.
The capital infusion will significantly strengthen RBL Bank’s Tier-1 capital base, enhance its balance sheet resilience, and provide long-term growth capital to support deposit franchise expansion and branch network growth across the country.
Mr. Shayne Nelson, Group CEO of Emirates NBD, commented:
“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 strong domestic presence with Emirates NBD’s regional expertise, creating a powerful platform for growth and innovation. An enhanced presence in India complements our service to customers across the MENATSA region and supports Indian businesses, trade, and investment flows throughout our network.”
Mr. Chandan Sinha, Chairman of RBL Bank, said:
“This partnership marks a defining moment in RBL Bank’s journey of transformation. Emirates NBD’s entry as a strategic shareholder reflects global confidence in India’s banking sector and in RBL Bank’s potential. Together, we aim to deepen our customer relationships, enhance capabilities, and build a future-ready institution rooted in trust and governance.”
Mr. R. Subramaniakumar, Managing Director & CEO of RBL Bank, added:
“Welcoming Emirates NBD as our strategic partner is a significant milestone. This partnership secures a globally respected anchor shareholder and a strong capital base for our future growth. We are confident that our combined strengths will unlock synergies and deliver superior value to all stakeholders.”
The proposed acquisition positions RBL Bank as a key player in India’s evolving banking landscape while offering ENBD a substantial presence in one of the world’s fastest-growing financial markets.