Emirates NBD Bank has secured approval from the Reserve Bank of India (RBI) to acquire a controlling stake in Mumbai‑based RBL Bank, signaling a landmark foreign investment in India’s banking sector. Under RBI’s approval, Emirates NBD can hold up to 74 % of RBL Bank’s paid-up capital, though voting rights remain capped at 26 % in line with Indian banking regulations.
The acquisition, first announced in October 2025, involves a $3 billion strategic investment through a preferential share issuance. Emirates NBD has already received regulatory clearance in its home country, and India’s competition authority had approved the deal earlier this year. Once completed, the transaction would become one of the largest cross-border banking acquisitions in India.
With RBI’s nod, RBL Bank will now move forward with a mandatory open offer to public shareholders, which requires approval from the Securities and Exchange Board of India (Sebi). The open offer would allow Emirates NBD to acquire an additional 26 % of RBL Bank’s voting share capital, in line with takeover regulations, further consolidating its stake.
After completion, RBL Bank will be reclassified as a foreign bank subsidiary, with Emirates NBD as its parent. The RBI has granted temporary regulatory relaxations during the transition, including exemptions from certain governance norms and rules for board meetings and branch integration.
The approval is valid for one year and remains subject to additional statutory clearances, including compliance with the Foreign Exchange Management Act (FEMA), Sebi rules, and government approvals for foreign direct investment beyond 49 %.
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