Dubai - Mubasher: Emirates NBD entered into definitive agreements to acquire a controlling stake in India-based RBL Bank Limited through a primary infusion of approximately $3 billion.

The proposed transaction aligns with the DFM-listed bank’s long-term commitment to the Indian market, according to a press release.

It is the largest ever foreign direct investment (FDI) in the Indian financial services sector as well as the largest equity fund raise in the Indian banking sector.

The investment will be made via a preferential issue of up to 60% and will be subject to regulatory approvals and other customary closing conditions.

Under the agreement, Emirates NBD will make a mandatory open offer for the purchase of up to 26% stake from the public shareholders of RBL Bank, in accordance with SEBI’s Takeover Regulations.

The board members greenlighted the amalgamation of the India branches of Emirates NBD with and into RBL Bank as required by RBI guidelines. This is expected to be completed after the execution of the preferential issuance into RBL Bank.

Meanwhile, the infusion will significantly strengthen RBL Bank’s balance sheet, enhance its Tier-1 capital ratio, and provide long-term growth capital, further enabling the lender to deepen its deposit franchise and scale its footprint through calibrated branch network expansion.

Shayne Nelson, Group CEO of Emirates NBD, said: “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.”

“An enhanced presence in India for ENBD, through a well-established business like RBL Bank, would further complement ENBD’s service to customers operating throughout the MENATSA region,” Nelson added. “We envisage to support Indian businesses, trade, projects, and other opportunities throughout the region leveraging our network.”

The Chairman of RBL Bank, Chandan Sinha, commented: "Together, we are poised Page 2 of 3 to strengthen our capabilities, deepen our customer franchise, and build a future-ready institution anchored in trust, governance, and growth."

Earlier this month, Emirates NBD scaled its cross-border payment network to more than 40 countries across Europe, Australia, Singapore, and Hong Kong.