A big deal is going to happen in the private banking sector of the country. RBL Bank reported on Saturday 17 October that Emirates NBD has entered into an agreement to purchase its 60 percent stake. Emirates NBD is one of the largest banking groups in the Middle East.
Under this deal, Emirates NBD will buy shares of RBL Bank at a price of Rs 280 per share and will infuse a total capital of Rs 26,853 crore. Once this preferential issue is completed, Emirates NBD will get control of the bank and will become the promoter of RBL Bank.
This deal is considered to be one of the largest foreign investments ever in the country’s banking sector. However, this transaction will depend on the approval of the Reserve Bank of India (RBI), shareholders and other regulatory bodies.
The Board of Directors of RBL Bank has approved the proposal to increase the authorized share capital of the bank from Rs 1,000 crore to Rs 1,800 crore for this investment. This clears the way for Emirates NBD to issue new shares.
foreign ownership limits
The deal will be subject to a maximum cap of 24% on total foreign ownership in the bank, pending regulatory approvals. The bank plans to apply for permission from RBI and other necessary institutions in this regard.
EGM will be held on 12th November
The bank has announced to convene an Extraordinary General Meeting (EGM) on November 12, 2025 to get the approval of its shareholders on this deal. The bank expects that the scheme will become effective from April 1, 2026, subject to all regulatory and shareholder approvals.
This deal is expected to significantly improve the capital base of RBL Bank. The bank says that this investment will increase its lending capacity and provide strong support to its long-term growth plans.
status of shares
RBL Bank shares closed at Rs 299.70 on Friday, October 17, down 2.30 per cent on the NSE. Since the beginning of this year, the bank’s shares have risen by about 90 percent.
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