Emirates NBD to invest $3 bn in RBL Bank for up to 60% controlling stake

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UAE-based Emirates NBD PJSC has entered into an agreement with private-sector lender RBL Bank to invest ₹26,850 crore (around $3 billion) for a controlling stake of up to 60 per cent, marking the largest cross-border investment in an Indian private bank.

 

The proposed investment will be made through a preferential issue and is subject to regulatory approvals and customary closing conditions, the bank said in a statement on Saturday.

 

Under the preferential allotment, up to 959.04 million shares will be issued at ₹280 per share to Emirates NBD, resulting in a stake of up to 60 per cent in RBL Bank. However, the final size of the allotment will depend on the available foreign ownership limit at the time of issue. Emirates NBD will acquire at least a 51 per cent aggregate stake in the bank.

 

As part of the transaction, Emirates NBD will also make a mandatory open offer to acquire up to a 26 per cent stake from RBL Bank’s public shareholders, in accordance with SEBI’s takeover regulations. The open offer price has been set at ₹280 per share for up to 415.58 million shares.

 

The deal also includes the amalgamation of Emirates NBD’s India branches with RBL Bank. Emirates NBD currently operates three branches in India — in Mumbai, Delhi, and Chennai.

 

“As consideration and upon effectiveness of the merger, Emirates NBD will be allotted additional shares in the bank at the same price of ₹280 per share,” RBL Bank said.

 

Following the completion of the transaction, Emirates NBD will be designated as the promoter of RBL Bank and will have the right to nominate directors to its board.

 

“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,” said Shayne Nelson, Group CEO of Emirates NBD.

 

Nelson added that an enhanced presence in India through a well-established business like RBL Bank would further complement Emirates NBD’s service to customers across the Middle East, North Africa, Türkiye, and South Asia (MENATSA) region.

 

According to the bank, the capital infusion will significantly strengthen its balance sheet, enhance its Tier-1 capital ratio, and provide long-term growth capital, enabling it to deepen its deposit franchise and expand its branch network.

 

Following the transaction, RBL Bank’s net worth will rise from ₹15,000 crore to ₹42,000 crore.

 

The bank said it would also benefit from Emirates NBD’s strong credit rating and its established relationships with corporates, banks, and financial institutions across India.

 

“This partnership secures a robust and globally respected anchor shareholder, providing a strong capital base for our future. We are excited about the synergies this alliance will create and are confident that our combined strengths will deliver superior value to all stakeholders,” said R Subramaniakumar, Managing Director & CEO of RBL Bank.