Emirates NBD To Acquire Majority Stake In RBL Bank
ECONOMY & POLICY

Emirates NBD To Acquire Majority Stake In RBL Bank

Emirates NBD Bank PJSC is set to acquire majority control of RBL Bank through a capital infusion of about Rs 150 billion (USD 1.7 billion), which will recapitalise the Indian lender and give the UAE-based bank a controlling stake, The Economic Times reported.

According to the report, the deal - now in its final stages - will involve a preferential allotment of equity shares and warrants, followed by an open offer to acquire an additional 26 per cent stake. Once completed, Emirates NBD is expected to hold around 51 per cent of RBL Bank’s expanded equity base. The Reserve Bank of India (RBI) has already granted in-principle approval for the change in control.

The entire capital infusion will be made via primary issuance, significantly strengthening RBL Bank’s balance sheet following a 46 per cent year-on-year decline in net profit for Q1 FY26. The bank’s profit fell to Rs 2 billion in the June 2025 quarter from Rs 3.7 billion a year earlier. Net Interest Income dropped 13 per cent to Rs 14.8 billion, while the Net Interest Margin contracted to 4.5 per cent. Gross NPAs rose to 2.78 per cent from 2.6 per cent, and net NPAs climbed to 0.45 per cent from 0.29 per cent.

RBL Bank attributed the decline to pressure in its credit card portfolio and said it was recalibrating unsecured lending to stabilise asset quality, while liability growth remained steady.

For Emirates NBD, the acquisition represents a major strategic expansion in Asia and an opportunity to tap into the India–Middle East remittance corridor. RBI data shows that Indians in GCC nations account for nearly half of India’s global migrant population, with the UAE alone contributing around half of the USD 38.7 billion in remittances India received from the Gulf in FY24 - making it the second-largest remittance source for the country.

Headquartered in Kolhapur, RBL Bank is fully publicly owned with no single controlling shareholder. Its board is scheduled to meet on 18 October to review Q2 results, with a formal announcement of the Emirates NBD deal expected on or before that date, the report added.

Emirates NBD Bank PJSC is set to acquire majority control of RBL Bank through a capital infusion of about Rs 150 billion (USD 1.7 billion), which will recapitalise the Indian lender and give the UAE-based bank a controlling stake, The Economic Times reported. According to the report, the deal - now in its final stages - will involve a preferential allotment of equity shares and warrants, followed by an open offer to acquire an additional 26 per cent stake. Once completed, Emirates NBD is expected to hold around 51 per cent of RBL Bank’s expanded equity base. The Reserve Bank of India (RBI) has already granted in-principle approval for the change in control. The entire capital infusion will be made via primary issuance, significantly strengthening RBL Bank’s balance sheet following a 46 per cent year-on-year decline in net profit for Q1 FY26. The bank’s profit fell to Rs 2 billion in the June 2025 quarter from Rs 3.7 billion a year earlier. Net Interest Income dropped 13 per cent to Rs 14.8 billion, while the Net Interest Margin contracted to 4.5 per cent. Gross NPAs rose to 2.78 per cent from 2.6 per cent, and net NPAs climbed to 0.45 per cent from 0.29 per cent. RBL Bank attributed the decline to pressure in its credit card portfolio and said it was recalibrating unsecured lending to stabilise asset quality, while liability growth remained steady. For Emirates NBD, the acquisition represents a major strategic expansion in Asia and an opportunity to tap into the India–Middle East remittance corridor. RBI data shows that Indians in GCC nations account for nearly half of India’s global migrant population, with the UAE alone contributing around half of the USD 38.7 billion in remittances India received from the Gulf in FY24 - making it the second-largest remittance source for the country. Headquartered in Kolhapur, RBL Bank is fully publicly owned with no single controlling shareholder. Its board is scheduled to meet on 18 October to review Q2 results, with a formal announcement of the Emirates NBD deal expected on or before that date, the report added.

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