Emirates NBD Bank (ENBD) has announced plans to acquire a controlling stake in RBL Bank Limited through a primary infusion of approximately USD 3 billion, or about INR 26,850 crore. The boards of both banks approved the transaction at meetings held on October 18, 2025.
This deal marks several milestones for the Indian financial sector. It is set to be the largest foreign direct investment in India’s financial services industry and the biggest equity fundraise in the Indian banking sector to date. It will also be the largest capital raise via preferential issuance by a listed company in India and represents the first time a foreign bank will acquire a majority interest in a profitable Indian bank.
The proposed investment involves ENBD subscribing to up to 60% of RBL Bank’s shares through a preferential issue, subject to regulatory approvals and customary closing conditions. In line with SEBI’s Takeover Regulations, ENBD will also make an open offer to purchase up to 26% from public shareholders of RBL Bank.
Both boards have approved merging ENBD’s India branches into RBL Bank as required by Reserve Bank of India guidelines. This merger is expected after completion of the share issuance.
ENBD stated that this move reflects its confidence in India’s growing financial sector and highlights India’s importance within the India-Middle East-Europe Economic Corridor. The transaction combines ENBD’s regional reach and capital base with RBL Bank’s established presence across India. The infusion is expected to strengthen RBL Bank’s balance sheet, improve its Tier-1 capital ratio, and support long-term growth through branch expansion.
Shayne Nelson, Group CEO of Emirates NBD, said: “Our investment in RBL Bank is a testament to our confidence in India’s vibrant and expanding economy. This strategic alignment brings together RBL Bank’s growing domestic franchise with Emirates NBD’s regional reach and financial expertise, creating a unique platform for growth and innovation. An enhanced presence in India for ENBD, through a well-established business like RBL Bank, would further complement ENBD’s service to customers operating throughout the MENATSA region. We envisage to support Indian businesses, trade, projects, and other opportunities throughout the region leveraging our network.”
RBL Bank Chairman Chandan Sinha commented: “This partnership marks a defining moment in RBL Bank’s journey of transformation. The entry of Emirates NBD as our strategic shareholder reflects the global confidence in India’s banking sector and RBL Bank’s potential within it. Together, we are poised to strengthen our capabilities, deepen our customer franchise, and build a future-ready institution anchored in trust, governance, and growth.”
R Subramaniakumar, Managing Director & CEO of RBL Bank added: “Welcoming ENBD as our new strategic partner is a significant milestone for the Bank. This partnership secures a robust and globally respected anchor shareholder, providing a strong capital base for our future. We are excited about the synergies this alliance will create and are confident that our combined strengths will deliver superior value to all the stakeholders of the Bank.”
Emirates NBD operates across 13 countries with over nine million active customers. As of October 2025 it had total assets near USD 296 billion and reported net profits of USD 3.4 billion for the first half of fiscal year 2025. The group is majority owned by Dubai Government entities.
RBL Bank serves around 15 million customers through more than 560 branches nationwide as well as digital channels.
Financial advisors on this transaction include Ernst & Young LLP (EY), J.P. Morgan, and NeoStrat Advisors for Emirates NBD; legal advice was provided by Shardul Amarchand Mangaldas & Co for ENBD and AZB & Partners for RBL Bank.
