GLOBAL REBOOT: THE LANDMARK EMIRATES NBD DEAL IS SET TO RESHAPE RBL BANK WITH GLOBAL MUSCLE AND MAY BECOME A BENCHMARK FOR FUTURE PARTNERSHIPS.

RBL BANK'S NET WORTH is set for a major boost—rising from ₹15,610 crore to an estimated ₹42,000-44,500 crore—once regulators green-light Dubai-based Emirates NBD's proposed $3 billion (₹26,853 crore) investment for a 60% stake in the lender.

- BY NAVNEET DUBEY

The Mumbai-headquartered mid-tier bank seems set for bigger things after the biggest foreign banking investment in India's fast-growing financial market. The proposal includes a fresh issue of around 960 million shares at ₹280 each through the preferential route. Emirates NBD has approved the purchase of a 51-74% stake, triggering a mandatory open offer for the remaining 26%. Thus, the largest banking group in the U.A.E. will become the controlling shareholder, pending regulatory approvals.

To set the ball rolling, RBL, founded in 1943 as Ratnakar Bank Ltd, will hold a shareholder vote in November.

Known for its diversified shareholding without a dominant promoter, the bank counts Quant Mutual Fund, Mahindra & Mahindra, LIC, Gaja Capital, and Zerodha among its investors. RBL has also proposed changes to its memorandum and articles of association to give Emirates NBD enhanced rights after the amalgamation.