Emirates NBD will invest $3 billion to acquire a 60% controlling stake in India’s RBL Bank, marking the largest FDI in India’s banking sector.
DUBAI / MUMBAI: In a landmark cross-border deal, Emirates NBD has announced a $3 billion investment to acquire a 60% controlling stake in India’s RBL Bank, through a preferential equity issuance. This historic agreement is the largest-ever foreign direct investment in India’s financial services sector and the biggest equity fund raise by a listed Indian bank.
The deal reflects Emirates NBD’s long-term commitment to the Indian market and reinforces the strategic importance of the India–Middle East–Europe Economic Corridor (IMEC). Once completed, it will also mark the first majority acquisition of a profitable Indian bank by a foreign lender.
The Dubai-based bank will make a mandatory open offer to acquire up to 26% more from RBL’s public shareholders, in accordance with SEBI regulations. The deal also includes the amalgamation of Emirates NBD’s India operations into RBL Bank, as per the Reserve Bank of India’s guidelines.
Shayne Nelson, Group CEO of Emirates NBD, said the investment is a testament to their confidence in India’s expanding economy and financial landscape. “An enhanced presence in India will further complement our service to customers across the MENATSA region,” he said.
RBL Bank, with over 564 branches and a customer base of 15 million, is expected to benefit significantly from the capital infusion. It will strengthen its Tier-1 capital, support branch expansion, and scale its digital and wealth offerings.
RBL Bank Chairman Chandan Sinha said the partnership marks a defining moment for the bank’s transformation journey, adding that Emirates NBD’s entry brings global confidence and growth capital.
Subject to regulatory approvals in India, including from the RBI and SEBI, the transaction will proceed in phases, with execution expected within the next few months.
