Emirates NBD Acquires 60% RBL Bank in $3B Deal Dubai’s premier bank eyes India’s growth engine with a record-breaking investment that could reshape regional financial ties. Dubai-based Emirates NBD announced on Saturday, 18 October 2025, its acquisition of a 60% stake in India’s RBL Bank for USD 3 billion.
The deal involves a primary infusion of 268.53 billion Indian rupees and an open offer for an additional 26% stake. This marks the largest foreign direct investment in India’s financial sector. The Emirates NBD RBL Bank deal 2025 underscores deepening economic links between the UAE and India amid rising cross-border investments in South Asia’s banking landscape. It positions Emirates NBD as a key player in India’s fast-expanding market, potentially boosting capital flows and innovation in the region.
Details of Emirates NBD RBL Bank Deal 2025
Emirates NBD acquires 60% RBL Bank through a preferential share issuance valued at approximately USD 3 billion. The investment equates to 268.53 billion Indian rupees at an exchange rate of USD 1 to 87.9740 Indian rupees. As part of the agreement, Emirates NBD will make an open offer to buy up to 26% more shares from public shareholders at 280 Indian rupees per share. This complies with India’s takeover rules, which mandate such offers for acquisitions exceeding 25%.
The RBL Bank stake sale to Emirates NBD includes Emirates NBD becoming the promoter of RBL Bank. This status allows nomination of directors to the board, subject to regulatory nods. The total foreign holding will stay within India’s 74% cap for private banks. Emirates NBD has committed to this limit in its announcements.
In an official post on X, Emirates NBD stated: “We are pleased to announce that Emirates NBD has entered into a definitive agreement to acquire a majority stake of approximately 60% in RBL Bank in India through a primary infusion of up to USD 3 billion.” The bank highlighted the deal’s milestones, including the largest-ever foreign direct investment in India’s financial services sector, the largest equity fundraise in India’s banking sector, the largest fundraise via preferential issuance by a listed company in India, and the first majority acquisition of a profitable Indian bank by a foreign bank.
RBL Bank echoed this in its X announcement: “Emirates NBD Bank is investing ~USD 3 billion by way of primary issuance in RBL Bank. We are glad to share details of the largest FDI and equity raise in the Indian banking sector!”
The Emirates NBD RBL Bank deal 2025 follows a joint statement from both banks: “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 infusion aims to strengthen RBL Bank’s balance sheet, enhance its Tier-1 capital ratio, and provide long-term growth capital.
Financial and Operational Impact
The RBL Bank stake sale to Emirates NBD injects substantial capital into RBL Bank, which reported assets of 1.46 trillion Indian rupees (USD 16.61 billion) as of March 2025. RBL Bank serves 15.17 million customers via 562 branches across 28 Indian states and union territories. It ranks as the 13th largest among 21 private banks in India.
Emirates NBD, with assets of USD 297 billion as of June 2025, is majority-owned by the Dubai government. It operates in Egypt, Saudi Arabia, and Turkey, where it acquired DenizBank in 2019. This acquisition expands its footprint into India, a market with robust growth potential.
Analyst Anand Dama from Emkay Global Capital Financial Services noted: “The acquisition will open up flood gates for more such investments into small- and mid-sized banks in the country.” He added that investors will monitor if the combined entity pursues further banking acquisitions in India.
Stock performance reflects optimism. RBL Bank’s shares rose 90% in 2025, outpacing the Nifty 50 index’s 8% gain. The Emirates NBD acquires 60% RBL Bank move could further stabilise and grow the bank, which faced leadership changes in 2021 after former CEO Vishwavir Ahuja’s resignation amid RBI scrutiny.
Background
RBL Bank, founded in 1943 as Ratnakar Bank, rebranded in 2014 and went public in 2016. It focuses on retail and small business lending. The bank navigated challenges in 2021 when the RBI appointed an additional director to its board for oversight. Since then, management stabilised, and earnings improved.
Emirates NBD formed in 2007 from the merger of Emirates Bank International and National Bank of Dubai. It has pursued international expansion, including the 2019 DenizBank purchase for USD 2.8 billion. The RBL Bank stake sale to Emirates NBD aligns with UAE banks’ strategy to tap emerging markets like India.
This deal follows Japan’s Sumitomo Mitsui Banking Corporation acquiring up to 25% in Yes Bank in September 2025. Such transactions highlight India’s appeal as a destination for foreign capital in banking, where regulations allow up to 74% foreign ownership but cap single-entity holdings at 15% without RBI exemptions.
The Emirates NBD RBL Bank deal 2025 requires RBI approval, given the need for an exemption on the 15% cap. Reuters reported on 14 October 2025 that the RBI informally backed the transaction. Other regulators, including stock exchanges, must also clear it.
What’s Next
The transaction remains subject to regulatory approvals from the RBI and other authorities. Upon completion, Emirates NBD will integrate operations, potentially leveraging its expertise in digital banking and international trade finance to enhance RBL Bank’s offerings.
The Emirates NBD acquires 60% RBL Bank could spur similar deals in South Asia, fostering greater UAE-India collaboration. It may also influence bilateral trade, given India’s role in the India-Middle East-Europe Economic Corridor.
As the Emirates NBD acquires 60% RBL Bank progresses, stakeholders anticipate enhanced financial stability and growth opportunities for RBL Bank in India’s competitive banking sector.
Published in SouthAsianDesk, October 19th, 2025
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