Emirates NBD may buy controlling stake in RBL Bank

JUST TWO MONTHS after it denied eyeing a minority stake in RBL Bank, reports have resurfaced about Emirates NBD, the second-largest bank in the UAE, being in advanced level of negotiations with the Mumbai-based lender for a controlling stake.The purchase could be executed via Emirates NBD’s Indian subsidiary.

- FE BUREAU

What’s interesting is that RBL Bank doesn’t have a promoter group as it’s fully owned by public shareholders, making this takeover pretty unique.

The deal, the size of which could not be ascertained, could happen through a preferential share issue. Any agreement would trigger a mandatory open offer under the takeover rules and requires the Reserve Bank of India’s (RBI) approval. The RBI,sources said, is open to approving the deal.