The Boards of Directors of Dubai’s Emirates NBD Bank (ENBD) and India’s RBL Bank have approved entering into definitive agreements for ENBD to acquire a controlling stake in RBL Bank through a primary capital infusion of approximately US$3 billion (around INR 26,850 crore).

The proposed transaction represents the largest foreign direct investment in India’s financial services sector, the largest equity fundraise in the Indian banking industry, and the largest preferential issuance by a listed Indian company.

It also marks the first acquisition of a majority interest in a profitable Indian bank by a foreign bank.

ENBD’s investment will be made through a preferential issue of up to 60% and remains subject to regulatory and other customary approvals.

In line with SEBI’s Takeover Regulations, ENBD will also make a mandatory open offer to purchase up to 26% from RBL Bank’s public shareholders.

As part of the transaction, the Boards of both banks have approved the amalgamation of ENBD’s India branches with RBL Bank, in accordance with Reserve Bank of India guidelines.

This amalgamation will take place following the completion of the preferential issue.

The investment reflects ENBD’s long-term commitment to India’s financial sector and the strategic importance of India within the India-Middle East-Europe Economic Corridor (IMEC).

The combination brings together ENBD’s capital strength and regional network with RBL Bank’s domestic reach across India.

The infusion is expected to strengthen RBL Bank’s balance sheet, improve its Tier-1 capital ratio, and provide growth capital to support its deposit base and branch expansion.

Shayne Nelson, Group CEO of Emirates NBD, said:

“This strategic alignment brings together RBL Bank’s growing domestic franchise with Emirates NBD’s regional reach and financial expertise, creating a platform for growth and innovation. An enhanced presence in India through a well-established business like RBL Bank would further complement ENBD’s service to customers across the MENATSA region.”

RBL Bank Chairman Chandan Sinha said:

“This partnership marks a defining moment in RBL Bank’s journey. The entry of Emirates NBD as our strategic shareholder reflects confidence in India’s banking sector and RBL Bank’s potential within it. Together, we aim to strengthen our capabilities, deepen our customer franchise, and build a future-ready institution anchored in trust and growth.”

Featured image credit: Edited by Fintech News Middle East, based on image by noob via Freepik