RBL Bank plans growth push with Emirates deal

The Dubai-based lender will own about 60% in RBL Bank once the deal is done

- Anshika Kayastha & Shayan Ghosh

The deal signals the central bank's greater comfort in allowing foreign banks to invest in local financial institutions.

(MINT)

RBL Bank Ltd expects to secure regulatory approvals in the next five to six months for a $3 billion investment from Emirates NBD, a deal that would ultimately transition the Indian private bank into a listed subsidiary of the foreign bank. As part of the acquisition, RBL Bank will be merged with Emirates NBD's wholly-owned subsidiary currently operating in India.

The Dubai-based lender is expected to make the first tranche of its investment in eight months from now, managing director and chief executive officer R. Subramaniakumar said on Sunday. A day earlier, the two lenders had announced what would be the biggest foreign direct investment in the Indian banking sector.

‘Ata press conference on Sunday, RBL Bank executives did not comment on any potential rebranding or identity shift after the ownership change.