Emirates NBD plans to acquire a 60% stake in RBL Bank for $3.05 billion, marking the largest cross-border acquisition in India's financial sector.

Information on the Target

Emirates NBD (ENBD), a Dubai-based financial institution, has announced its intention to acquire a 60% stake in RBL Bank, a private lender in India, for $3.05 billion (approximately INR 26,786 crores). This acquisition marks a significant milestone as it represents the largest cross-border acquisition in the financial sector of India to date. The deal is expected to be finalized pending regulatory approvals and will include a subsequent open offer to retail shareholders for an additional 26% stake at ₹280 per share, in accordance with Indian takeover regulations.

If completed, ENBD will assume the position of the promoter of RBL Bank, which will entail the right to appoint members to the bank's board. In addition, to comply with the existing regulations, ENBD's total ownership will remain within the permissible foreign investment limit of 74% for private banking entities in India. This investment is expected to fortify RBL Bank’s balance sheet and elevate its Tier-1 capital ratio, providing essential growth capital to facilitate broader expansion efforts. RBL Bank boasts a robust asset base of $16.6 billion (approximately INR 145,787 crores), serving over 15.17 million customers across 562 branches nationwide.

Industry Overview in India

The Indian banking sector is witnessing rapid transformation and growth, driven by both regulatory reforms and an increasing demand for financial services. The Reserve Bank of India has implemented various measures to enhance liquidity and stabilize the banking landscape, thereby fos