MUMBAI/DUBAI: Middle Eastern bank Emirates NBD will buy a 60 percent stake in Indian private lender RBL Bank for USD3 billion, in the largest cross-border acquisition in India’s financial sector.
Emirates NBD will invest 268.53 billion Indian rupees (USD3.05 billion) in the bank through a preferential issue of shares, RBL Bank said in a statement to exchanges.
The deal is among a series of cross-border deals in India this year, and comes months after Japan’s Sumitomo Mitsui Banking Corporation’s move to buy up to 25 percent of Yes 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,” the banks said in a joint statement after the deal was announced.
The lender, which is entirely owned by retail shareholders and investment funds, said the deal is subject to regulatory approvals.
India allows 74 percent foreign investment in private banks but limits shareholdings of any single foreign institution to 15 percent unless regulator the Reserve Bank of India grants an exemption. The RBI has informally communicated its backing for the ENBD deal, Reuters has reported.
As part of the deal, Emirates NBD will also launch an open offer for additional shares from retail shareholders in line with India’s takeover regulations.
As per these rules, an acquisition of more than 25 percent shares in a company requires the acquirer to offer to buy another 26 percent from retail shareholders.
Emirates NBD will ensure its shareholding does not go beyond the overall 74 percent foreign investment limit, the exchange announcements from both banks said.
As of March 2025, RBL Bank had assets of 1.46 trillion Indian rupees ( USD16.61 billion), making it the 13th largest of 21 private banks in the country.
The lender has 15.17 million customers and a network of 562 branches across 28 Indian states and union territories.
“The infusion will significantly strengthen RBL Bank’s balance sheet, enhance its Tier-1 capital ratio, and provide long-term growth capital,” the banks said in the press release.
Emirates NBD, which is majority-owned by Dubai’s government, had assets worth USD297 billion as of end-June. Together with other UAE banks, it has benefited in recent years from rising demand for credit and government-driven investment in non-oil sectors.
It has operations in countries including Egypt, Saudi Arabia and Turkey, where it acquired DenizBank in 2019. It has three branches in India.
