Emirates NBD eyes stake in RBL Bank

Talks between the two picked up after Sumitomo completed the acquisition of 20% in Yes Bank in September.

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RBL Bank does not have a promoter and is fully owned by public shareholders.

The Japanese firm has also signed an agreement with CA Basque Investments, a company affiliated with The Carlyle Group Inc., to acquire an additional 4.2% in Yes Bank, taking its total stake to 24.2%. In August, RBI had approved SMBC’s proposal to buy up to 24.99% in Yes Bank. Discussions between Emirates and RBL Bank picked up after the Yes Bank deal, the first person said.

RBI governor Sanjay Malhotra told CNBC TV18 in July that the central bank had not yet received any case where a foreign bank wants to own 26% in Indian banks.

“As per the FDI policy, the foreign banks are allowed up to 74%. Foreign banks can certainly have 26% stake in an Indian bank,” he told the channel.

There have been very few cases of foreign banks acquiring Indian lenders.

The central bank seized Yes Bank in March 2020 after its financial position deteriorated and supervised its acquisition by a clutch of banks led by State Bank of India.

Mint reported in August that the Yes Bank-SMBC deal may pave the way for similar transactions.