NEW DELHI: In one of the largest-ever FDI in Indian financial services sector, UAE-based Emirates NBD Bank and RBL Bank Limited has announced that their respective Boards have approved definitive agreements for ENBD to acquire a controlling stake in RBL Bank through a primary capital infusion of approximately $3 billion Rs 26,850 crore.
This landmark transaction sets multiple records, establishing itself as the largest ever foreign direct investment (FDI) in the Indian financial services sector. This is also the largest ever equity fund raise in the Indian banking sector, and is first acquisition of a majority interest in a profitable Indian bank by a foreign bank.
The investment will be executed through a preferential issue of new shares, giving ENBD up to a 60% stake in RBL Bank. In accordance with Indian securities regulations, ENBD will also make a mandatory open offer to public shareholders to acquire up to a further 26% stake.
Emirates NBD is a leading banking group in the Middle-east and North Africa region with presence in 13 countries, serving over 9 million customers. It is listed on the Dubai Financial Market with a market capitalization of approximately $43 billion as of October 15, 2025.
The Government of Dubai holds a 56% stake in the bank. RBL Bank, on the other hand is a listed private sector bank in India with a legacy of over 80 years. It serves over 15 million customers through a network of 564 branches and a strong digital payments ecosystem.
The partnership aims to create a powerful financial institution by combining ENBD's robust capital base and international reach with RBL Bank's deep-rooted presence and extensive distribution network across India.
The massive capital infusion is expected to significantly strengthen RBL Bank's balance sheet, enhance its Tier-1 capital ratio, and provide long-term growth capital to deepen its deposit franchise and expand its branch network.
The Boards of both banks have also approved the subsequent amalgamation of ENBD's existing India branches with RBL Bank, as required by the Reserve Bank of India (RBI). This will create a unified, stronger entity.
“Our investment in RBL Bank is a testament to our confidence in India’s vibrant and expanding economy. This strategic alignment brings together RBL Bank’s growing domestic franchise with Emirates NBD’s regional reach and financial expertise, creating a unique platform for growth and innovation,” said Shayne Nelson, Group CEO of Emirates NBD.
R Subramaniakumar, Managing Director & CEO of RBL Bank, added: “Welcoming ENBD as our new strategic partner is a significant milestone for the Bank. This partnership secures a robust and globally respected anchor shareholder, providing a strong capital base for our future. We are excited about the synergies this alliance will create.”
The transaction is seen as a major step in strengthening economic ties between India and the UAE, reinforcing India's strategic importance within the India-Middle East-Europe Economic Corridor (IMEC). The transaction is subject to regulatory approvals and other customary closing conditions.
The Emirates NBD-RBL Bank deal comes close on the heels of Japan-based Sumitomo Mitsui Banking Corporation acquiring a 24.2% stake in Yes Bank.
