RBL Bank aims to power growth with Emirates capital

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.

- Anshika Kayastha & Shayan Ghosh

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.

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

Asked if Emirates NBD might see more value in retaining RBL Bank's domestic identity or opt to expand the business under its own bigger global brand patronage, the management hinted at the possibility of a joint name.

Subramaniakumar said the deal value was based on the strong franchise built by RBL Bank and is expected to be positive for all stakeholders including shareholders and investors. "We are not a distressed bank," he said, adding the ambition is to become "bolder" before taking any other big strategic decisions.