RBL Bank Acquisition: Emirates NBD to Invest Rs 15,000 Crore for 51% Stake in RBL Bank After RBI Approval

Emirates NBD Bank PJSC, the second-largest bank in the United Arab Emirates, is in advanced negotiations to acquire a controlling stake in RBL Bank through a Rs 15,000 crore (approximately $1.7 billion) investment. According to an ET report, sources familiar with the matter, the proposed deal would make Emirates NBD the largest shareholder in RBL Bank, with a 51% stake post-investment.

Emirates NBD Set to Acquire 51% Stake in RBL Bank After RBI Nod

The deal structure involves a primary capital infusion through the issuance of preferential equity shares and warrants, followed by an open offer to acquire an additional 26% stake from public shareholders. The Reserve Bank of India (RBI) has reportedly granted its in-principle approval for the proposed change of control, marking a major step toward regulatory clearance.

The investment aligns with Emirates NBD's strategy to strengthen its presence in Asia and deepen its footprint in the India-West Asia remittance corridor, a market segment of growing importance. Indians living in Gulf Cooperation Council (GCC) countries account for nearly half of India's overseas diaspora, with the UAE being a key contributor to the country's inward remittance flows.

This acquisition would enable Emirates NBD to directly tap into this remittance network while gaining a strong foothold in India's banking market, considered one of the fastest-growing in the world.

Emirates NBD-RBL Bank Deal: Board Approval and Financial Implications

RBL Bank has scheduled a board meeting on October 18 to review and approve its quarterly and half-yearly results. It is likely that the proposed investment by Emirates NBD will be a key agenda item, given its potential to significantly reshape the bank's ownership structure and capital base.

RBL Bank currently has a market capitalisation of Rs 17,786.8 crore, and the capital infusion is expected to bolster its balance sheet and support future growth. The move is seen as part of a broader recapitalisation effort, aimed at stabilising the bank's operations and expanding its secured retail loan portfolio.

Once the deal is completed, Emirates NBD is expected to hold a 51% stake in the bank's expanded equity base. This will represent one of the top three M&A transactions in India's banking sector to date.

No Premium Expected; RBL Bank Shares Up Over 80% YTD

The investment talks began when RBL's stock was trading around Rs 220 per share, and therefore, no significant premium is expected over current market prices. RBL shares have risen 6.58% in the past month and have gained 83.27% year-to-date, reflecting renewed investor confidence amid the bank's financial turnaround.

Disclaimer

The views and recommendations expressed are solely those of the individual analysts or entities and do not reflect the views of Goodreturns.in or Greynium Information Technologies Private Limited (together referred as "we"). We do not guarantee, endorse or take responsibility for the accuracy, completeness or reliability of any content, nor do we provide any investment advice or solicit the purchase or sale of securities. All information is provided for informational and educational purposes only and should be independently verified from licensed financial advisors before making any investment decisions.