Synopsis:
Emirates NBD Bank, the UAE’s second-largest bank, is in advanced discussions to invest approximately Rs.15,000 crore in Indian private lender RBL Bank Limited. If completed, Emirates NBD would become RBL Bank’s largest shareholder, gaining substantial control and influence over the Indian bank.
The shares of this private banks, which offer services across wholesale and retail banking, treasury, and other financial operations, have attracted investor attention following news of a planned Rs.15,000 crore investment by an international bank.
With a market capitalization of Rs.18,002.96 crore, the shares of RBL Bank Limited were trading at Rs.293.50, up by 1.15 percent from the previous day’s closing price of Rs.290.15.
What’s the news?
Emirates NBD Bank, the UAE’s second-largest bank, is reportedly in advanced talks to acquire a controlling stake in Indian private lender RBL Bank. The investment amount Rs.15,000 crore is close to RBL’s current market capitalization. The deal involves purchasing new equity shares and warrants, providing direct capital support to strengthen RBL’s financial base.
Following this, Emirates NBD intends to make an open offer for an additional 26 percent stake. Once completed, the bank would hold around 51 percent ownership, gaining majority control.
RBI has given in-principle approval to Emirates NBD Bank to set up a wholly owned subsidiary in India. This approval allows the bank to convert its existing branches in Chennai, Gurugram, and Mumbai into a fully owned Indian entity, changing its operational structure in the country.
Under current FDI regulations in India, foreign investors can collectively own up to 74 percent of a private Indian bank, but typically, a single foreign entity is restricted to a maximum 15 percent stake. Normally, these rules prevent one foreign bank from holding a controlling share, though the Reserve Bank of India has occasionally allowed exceptions.
Banking industry experts anticipate that the regulator may allow Emirates NBD up to 15 years to either reduce its stake or establish a wholly owned subsidiary to take over RBL.
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About the company & Others
RBL Bank Limited is among India’s fastest-growing private sector banks, steadily expanding its presence nationwide. The bank offers a diverse range of banking and financial services, including retail and wholesale banking, treasury operations, and other related activities. It began operations at its International Financial Services Centre Banking Unit in Gujarat International Finance Tec-City.
The company’s revenue decreased from Rs.3,496 crore in Q1FY25 to Rs.3,441 crore in Q1FY26, while net profit decreased from Rs.372 crore to Rs.200 crore over the same period. It reports a return on equity of 4.57 percent and a return on capital employed of 6.04 percent.
Written by Jhanavi Sivakumar
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