Emirates NBD, the UAE’s second-largest bank, is reportedly in advanced negotiations to acquire a controlling stake in RBL Bank, marking a potential landmark foreign investment in India’s banking sector. The transaction may be executed through Emirates NBD’s Indian subsidiary and could involve a preferential share issue, which would trigger a mandatory open offer under takeover regulations.
The Reserve Bank of India (RBI) is reportedly open to approving the deal, although sources indicate that Emirates NBD’s voting rights may be capped at 26%, in line with regulatory norms.
RBL Bank’s shares have rallied sharply in recent months amid speculation surrounding the deal, closing flat at ₹289.20 on the NSE on Monday, giving the bank a market capitalization of ₹17,728 crore.
What makes this potential acquisition unique is that RBL Bank does not have a promoter group, as it is entirely owned by public shareholders.
The development comes as the RBI explores policy changes to permit greater foreign ownership in Indian banks, striking a balance between capital inflows and prudential oversight. The central bank has previously allowed select exceptions, including Sumitomo Mitsui Banking Corp’s 20% stake in Yes Bank and DBS Bank’s acquisition of Lakshmi Vilas Bank.
RBL Bank’s board is scheduled to meet on October 18 to review its quarterly and half-yearly financial results for the period ending September 2025.
