Emirates NBD’s plan of acquiring a majority stake in RBL Bank has come to pass. The idea of doing so was first put out on October 18 last year. The acquisition involves an investment of about $3 billion.

The approval has been confirmed by Emirates NBD and RBL Bank.

Now that the government of India has given final clearance, Emirates NBD is all set to take over RBL Bank, listed on local stock exchanges.

Describing the move as ‘a pivotal moment’ for the bank, Chandan Sinha, Chairman of RBL Bank, said, “The approval reinforces confidence in our franchise and positions us to unlock new growth opportunities, expanding cross-border corridors and scaling of our key business segments while maintaining customer centricity and strong governance standards.”

Emirates NBD, as per the plan, would subscribe to up to 959,045,636 fully paid equity shares of RBL Bank at Rs. 280 per share through a preferential issue, representing approximately 60% of RBL Bank’s post-issue paid-up share capital.

“With the receipt of the approval of the Government of India, all requisite regulatory and governmental approvals for Emirates NBD’s landmark acquisition of a majority controlling stake in RBL Bank Limited have been received. This milestone clears the path for the imminent completion of a transaction that represents one of the most significant cross-border investment in India’s financial services sector,” said Emirates NBD in a statement.

Chairman of Emirates NBD Sheikh Ahmed bin Saeed Al Maktoum said, “Emirates NBD continues to accelerate development across our network and deepening our presence in high-potential regional markets such as India.”

Upon completion, Emirates NBD will be recognised as the promoter of RBL Bank, which will operate as a foreign bank subsidiary under the Reserve Bank of India framework.

RBL Bank stated that the proposed investment of around $3 billion “represents one of the largest international investments in the Indian banking sector and is expected to position RBL Bank strongly for its next phase of growth”.

R. Subramaniakumar, MD and CEO of RBL Bank, said, “This milestone marks a transformational step forward for RBL Bank. It strengthens our ability to accelerate growth, deepen our presence across priority segments, and unlock new opportunities both domestically and globally.” – editor@nrifocus.com