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In a significant move, Dubai-based Emirates NBD Bank (ENBD) has agreed to acquire a controlling stake in RBL Bank through a primary infusion of approximately $3 billion (around Rs 26,850 crore).
The proposed investment will be made via a preferential issue of up to 60 per cent, be subject to regulatory approvals and other customary closing conditions. As part of this transaction, ENBD will also make a mandatory open offer for the purchase of up to 26 per cent stake from the public shareholders of RBL Bank, in accordance with Sebi’s Takeover Regulations, RBL Bank said on Saturday.
ENBD is 56 per cent owned by the Dubai Government via Investment Corporation of Dubai and Dubai Holding Group.
The Board of Directors of ENBD and RBL Bank also approved the amalgamation of the India branches of ENBD with and into RBL Bank as per RBI guidelines. This is expected to be completed after the execution of the preferential issuance into RBL Bank. “This investment reflects ENBD’s confidence in India’s fast-growing financial sector, reinforcing India’s strategic importance within the India-Middle East-Europe Economic Corridor and marking an important chapter in the economic partnership between India and the UAE,” RBL Bank said.
The transaction brings together ENBD’s strong capital base and regional franchise with RBL Bank’s established presence and extensive distribution across India. The infusion will significantly strengthen RBL Bank’s balance sheet, enhance its Tier-1 capital ratio, and provide long-term growth capital, further enabling the Bank to deepen its deposit franchise and expand its footprint through calibrated branch network expansion, RBL Bank said.
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,” Nelson said.
RBL Bank was earlier known as Ratnakar Bank Ltd, founded in 1943 in Kolhapur, Maharashtra, as a small regional lender catering primarily to traders and small businesses. In 2014, it rebranded itself as RBL Bank Ltd, marking its evolution into a modern, full-service private sector bank with a nationwide presence.
“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,” RBL Bank Chairman Chandan Sinha said.
