Emirates NBD will acquire a 60% stake in India’s RBL Bank for $3 billion, marking the largest foreign investment in India’s financial sector to date. The Middle Eastern bank will invest 268.53 billion Indian rupees ($3.05 billion) through a preferential issue of shares, according to a statement from RBL Bank to exchanges.
This deal follows a surge of cross-border transactions in India’s banking industry, including Japan’s Sumitomo Mitsui Banking Corporation’s move to acquire up to 25% of Yes Bank earlier this year. Moreover, UAE-based banks such as Emirates NBD and Abu Dhabi’s FAB have been expanding their regional presence in Saudi Arabia and Egypt, further emphasizing their international growth strategy.
Expanding Ties and Strengthening Capital
“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.
The transaction is still subject to regulatory approvals. Under current Indian rules, foreign investors can own up to 74% in private banks, but a single foreign entity cannot hold more than 15% unless the Reserve Bank of India (RBI) grants an exemption. Reuters has reported that the RBI has informally communicated support for this acquisition.
As part of the agreement, Emirates NBD will launch an open offer to retail shareholders in accordance with India’s takeover regulations, offering 280 rupees per share. Since any acquisition exceeding 25% triggers a mandatory offer for another 26%, Emirates NBD will ensure that its total stake does not surpass the 74% foreign investment ceiling.
Once completed, Emirates NBD will become the promoter of RBL Bank, a classification for major shareholders with management control. The Dubai-based lender will also gain the right to nominate directors to RBL’s board, pending regulatory approval.
Strengthening India-UAE Financial Links
According to Anand Dama, head of financial sector research at Emkay Global Capital Financial Services, this transaction “will open up floodgates for more such investments into small- and mid-sized banks in the country.”
RBL Bank has undergone a major transformation since the resignation of former CEO Vishwavir Ahuja in 2021, when the central bank appointed an additional director to its board. Since then, management stability has returned, and earnings have strengthened. The bank’s stock has surged 90% in 2025, far outperforming the 8% rise in India’s Nifty 50 index.
As of March 2025, RBL Bank reported assets of 1.46 trillion rupees ($16.61 billion), ranking it the 13th largest among 21 private lenders in India. The bank serves 15.17 million customers through 562 branches across 28 states and union territories.
According to the banks, the capital infusion will enhance RBL’s balance sheet, strengthen its Tier-1 capital ratio, and provide long-term growth capital. Analysts believe the deal could enable the combined entity to pursue further acquisitions in the Indian banking space.
Emirates NBD, majority-owned by Dubai’s government, reported $297 billion in assets as of June 2025. The bank has continued to benefit from strong credit demand and investment in non-oil sectors across its operating markets, which include Egypt, Saudi Arabia, and Turkey, where it acquired DenizBank in 2019.
