Emirates NBD Bank and RBL Bank Limited have agreed to enter into a memorandum of understanding for Emirates NBD to acquire a controlling stake in RBL Bank for an amount of approximately $3bn (INR26,850 Crore).
The proposed transaction marks a major milestone for the Indian financial services sector, which represents:
- Foreign direct investment in India’s financial services sector
- The largest equity fundraise in the Indian banking sector
- Largest Fundraise by Special Issue by a listed company in India
- First acquisition of a major interest in a profitable Indian bank by a foreign bank
Foreign Investment
Emirates NBD will make its investment in a preferred issue of 60 percent, subject to regulatory approvals and custom closing conditions.
As part of the transaction, Emirates NBD will also make a mature open offer to buy up to 26 percent of RBL Bank’s Spreedrolveld, according to SEBI Takeover rules.
Both boards also approved the merger of the Indian branches of Emirates NDRATE NDIA and RBL Bank, as required by the Reserve Bank of India (RBI) guidelines. The integration will be completed after the execution of the optional release.
This investment reinforces Emirates NBD’s long-term commitment to the Indian market and India’s strategic importance within the India-Middle East-Europe Acobel Corridor (IMEC).
UAE-India
The transaction includes the Emirates NBD Capital Base and Regional Franchise through RBL Bank’s extensive RBL Distribution Network in India.
The offering will strengthen RBL Bank’s Balance Sheet, improve its Tier-1 rating, and provide capital for long-term growth, enabling the bank to deepen its deposit franchise and expand its branch network.
Shayne Nelson, CEO of the Emirates NBD group, said: “Our investment in RBL Bank is a testament to our commitment to the Indian economy and expanding the economy.
“The strategic alignment brings together RBL Bank’s growing domestic presence with Emirates NBD’s Realizing and financial technology, creating a unique platform for growth and innovation.
“ENBD’s enhanced presence in India, through a well-established business like RBL Bank, will continue to complement ENBD’s mission to clients across Menatsa.
“We intend to support Indian businesses, trade, projects, and other opportunities throughout the region that includes our network.”
Emirates NBD Partners
Chandan Sinha, Chairman of RBL Bank, said: “This partnership marks a defining moment in RBL’s transformational journey. The entry of Emirates NBD as a global confidence in the Indian banking sector and RBL Bank’s Think within it.
“Together, we are poised to strengthen our capabilities, deepen our franchise, and build a future-ready facility focused on reliability, stewardship and growth.”
Strengthening Friends’ Financial Relationships
RBL Bank will be able to capitalize on Emirates NBD’s strong credit rating and relationships with corporates, banks and financial institutions across India.
On the other hand, Emirates NBD will benefit from the revival of the market provided by the Pan-India network of RBL Bank and the expanding business franchise.
Investments will continue to deepen UAE-India Finance and Trade, building on decades of bilateral cooperation and increasing cross-border financial flows.
