Emirates NBD Bank has moved to acquire a controlling stake in RBL Bank through a primary infusion of approximately $3 billion, marking a landmark deal in the Indian financial sector.
The agreement, approved by the boards of both banks on Monday, highlights ENBD’s long-term commitment to India and sets new records for foreign investment and equity fundraising in the country.
The investment will be executed via a preferential issue of up to 60%, subject to regulatory approvals and customary closing conditions. ENBD will also make a mandatory open offer to purchase up to 26% of RBL Bank’s public shares under SEBI’s Takeover Regulations.
As part of the transaction, the India branches of Emirates NBD will be amalgamated into RBL Bank in line with RBI guidelines. The move is expected to strengthen RBL Bank’s balance sheet, enhance its Tier-1 capital ratio, and provide long-term growth capital, enabling expansion of its deposit franchise and branch network.
ENBD Group CEO Shayne Nelson said the investment reflects confidence in India’s expanding economy and strengthens ENBD’s strategic presence across the India-Middle East-Europe Economic Corridor. RBL Bank Chairman Chandan Sinha called the partnership a defining moment, emphasizing the global confidence it signals in the bank and India’s banking sector.
RBL Bank’s Managing Director and CEO, R Subramaniakumar, noted the deal secures a robust anchor shareholder and expected synergies to deliver superior value for all stakeholders. The partnership combines ENBD’s strong capital base and regional franchise with RBL Bank’s pan-India network, positioning both banks for accelerated growth and innovation.
Financial advisory for the deal was provided by Ernst & Young LLP, J.P. Morgan, and NeoStrat Advisors, with Shardul Amarchand Mangaldas & Co advising ENBD and AZB & Partners advising RBL Bank.
News Source: Dubai Media Office
