Growth Push

RBL will become a listed subsidiary of Emirates NBD after its merger with the Dubai-based firm, giving it capital to transition from a mid-sized to a larger bank

- SALIL PANCHAL

DRIVEN BY ITS HUNGER FOR growth capital and the need for funding in larger tranches, mid-sized RBL Bank recently gained a key advantage in signing a landmark deal with the Dubai-based Emirates NBD Bank. The transaction also marks the largest-ever foreign direct investment in India’s financial sector and the first instance of a foreign bank acquiring majority ownership in an Indian bank.

On October 18, both the boards of RBL Bank and Emirates NBD Bank approved the agreements, through which the latter will make a primary infusion of near $3 billion (₹26,850 crore) into RBL to gain a controlling stake.

Emirates NBD currently operates in India as a foreign bank under the branch mode. It operates three branches in India, offering trade finance, treasury services, bilateral and syndicated loans, and assisting the needs of non-resident Indians. Once the entire deal is complete, RBL will become a subsidiary of the foreign bank.

Investors have been welcoming RBL’s operational efficiency and the news of a majority shareholder. The RBL Bank stock has risen 101.4 percent in 2025, to a five-year-high of ₹324.1—and nearly 7 percent since the deal announcement—at the BSE.

The deal will help RBL grow from a mid-sized bank to a future-ready financial institution, which can provide long-term value to shareholders. “We want to move to the league of the larger banks,” he said.