'Emirates NBD deal is not a sale, it is infusion of fresh equity capital'

RBL Bank, one of the first Indian banks to operate without a promoter entity, made a history last week by announcing the largest-ever foreign direct investment (FDI) in the domestic banking sector.

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The bank clinched a %26,853 crore deal with Emirates NBD Bank, under which it will issue 960 million preferential shares at 280 per share to the acquirer for a 60% equity stake upon conversion, along with a mandatory open offer for an additional 26% later. The bank’s MD and CEO R Subramaniakumar spoke to Benn Kochuveedan about the deal and the bank’s performance. Excerpts:

When do you see the transaction being completed, and how confident are you about obtaining RBI approval, especially since it recently rejected Japanese lender SMBC’s bid to become a promoter of Yes Bank?

First of all, this is only a proposal. We need to obtain all the necessary approvals, starting with shareholders and then the regulatory authorities—of which the RBI's nod is key. My rough estimate is that the entire process will take six-eight months.