Dubai’s Emirates NBD to Buy Majority Stake in RBL Bank in $3 Billion Deal

Dubai-headquartered banking major Emirates NBD is reportedly in the final stages of talks to acquire a majority stake in RBL Bank.

While the Mumbai-based lender has not confirmed the investment discussions, it stated that it “routinely explores opportunities aimed at enhancing shareholder value.”

On Wednesday, RBL Bank’s shares rose 1.85% to ₹296.95 on the BSE during intraday trade.

According to a Moneycontrol report, Emirates NBD Bank PJSC, the Indian subsidiary of the UAE-based lender, has received in-principle approval from the Reserve Bank of India (RBI) for the deal. If executed, it would mark one of the largest foreign direct investments in India’s banking sector.

A few months ago, Sumitomo Mitsui Banking Corporation (SMBC) bought a 20% stake in Yes Bank and plans to acquire an additional 4.2% stake in the private lender.

However, the RBL Bank deal would involve a majority stake transfer, according to reports. Emirates NBD, through its Indian subsidiary, has proposed the acquisition of a 51% stake in RBL Bank. The investment will come as fresh equity at around ₹295 per share, translating to a capital infusion of roughly ₹18,000 crore ($2.2 billion). Following the primary equity infusion, the bank plans to launch an open offer to acquire an additional 23–24% stake, estimated at ₹9,000 crore.

Once the deal is finalised, Emirates NBD is expected to secure five key board seats, making RBL Bank its largest overseas subsidiary outside Dubai.

Emirates is also preparing to initiate a voluntary open offer for 10% soon after the announcement, with plans to expand its holding further. In total, Emirates’ investment in RBL Bank could approach $3 billion.

As part of its India expansion strategy, Emirates NBD Bank PJSC has already received in-principle approval from the RBI to transition from a branch structure to a wholly owned subsidiary (WOS) in India. This framework opens the door to a potential merger between RBL Bank and Emirates’ Indian arm, creating a consolidated entity that would serve as a key subsidiary of the Dubai-based parent, the report added.

Negotiations between Emirates and RBL began around six months ago. Initial talks in March lost momentum but resumed in August after greater clarity emerged on the proposed structure.