Emirates NBD Set To Buy Controlling Stake In RBL Bank, Say Sources — Profit Exclusive

Emirates NBD is set to buy a controlling stake in RBL Bank, the Mumbai-based private Indian lender, NDTV Profit learnt exclusively from sources on Monday.

The Dubai-based lender will acquire around 60% stake in RBL Bank for approximately $3 billion, the persons privy to the development said, adding that the transaction is expected to be announced soon.

According to sources in the know, this will be done entirely using the fresh equity issuance route, meaning that the entire capital will be directly infused into the bank. The transaction will be conducted through the Indian wholly-owned subsidiary of Emirates NBD, after which it will be merged into RBL Bank. This is the first such transaction being worked on in India.

While Reserve Bank of India has not budged on its 26% voting rights cap in this deal, it will likely allow Emirates NBD to acquire and keep its majority stake in RBL Bank. Considering its dispersed ownership, Emirates NBD is confident that no major resolutions can be passed without the Dubai-based lender saying so.

RBL Bank will continue hosting its current client base in the retail and medium, small and micro enterprises segments. Emirates NBD will help the lender develop cross-border financing and non-resident businesses through this transaction.

At this stage, no material management changes are envisaged at RBL Bank, the sources quoted above said.

Queries mailed to RBL Bank, Emirates NBD and RBI remained unanswered immediately.

Emirates NBD was also keen on buying controlling stake in IDBI Bank as part of the government’s effort to sell the lender. However, considering the large equity stake held by the government and Life Insurance Corporation of India in IDBI Bank, RBL Bank looked more enticing to the investor, sources said.

RBL Bank, formerly known as The Ratnakar Bank Ltd, is a private sector lender established in 1943. Originally established as a regional bank in Maharashtra, RBL Bank became a private sector lender in 1970. It, however, remained a closely owned small lender, largely limited to Maharashtra.

In 2010, Bank of America ex-banker Vishwavir Ahuja took over as MD and CEO. In 2014, Ahuja renamed the lender to RBL Bank to make it a national private bank. In December 2021, Ahuja stepped down suddenly, before his tenure ended. The regulator appointed a director on the board to monitor the transition at the lender.

While his deputy Rajeev Ahuja continued to run the bank as interim MD and CEO for a few months after, RBI later appointed K Subramaniakumar as the leader in June 2022.

The domestic lender reported advances worth Rs 94,431 crore as of June 30, 2025, while its deposits stood at Rs 1.12 lakh crore. It reported a net profit of Rs 200 crore for the first quarter, down 46% year-on-year. Its gross non-performing asset ratio stood at 2.78%, higher 18 basis points sequentially, while its net NPA ratio was up nearly 16 basis points quarter-on-quarter at 0.45%.