- The Cabinet Committee on Economic Affairs will meet on June 24 to approve Emirates NBD's deal with RBL Bank
- Emirates NBD plans to invest Rs 26,000 crore for a 60% controlling stake in RBL Bank
- This is the largest-ever foreign direct investment in India's domestic banking sector
The Cabinet Committee on Economic Affairs (CCEA) is expected to meet on June 24 to consider and potentially grant its final clearance for the high-stakes deal between Dubai-based Emirates NBD and India's RBL Bank. The transaction involves an investment of approximately Rs 26,000 crore by Emirates NBD to acquire a controlling 60% stake in the Indian private lender.
If approved, the transaction will mark a historic milestone for India's financial sector, representing the largest-ever foreign direct investment (FDI) in the domestic banking market, as reported by NDTV Profit earlier. It also stands out as the first time a foreign banking entity has been permitted to acquire a majority, controlling interest in a profitable, listed Indian commercial bank.
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The transaction, which was announced on October 18 last year, was completed after receiving all regulatory approvals and fulfilment of closing conditions, Emirates NBD and RBL Bank said in a joint statement. The investment was completed through a preferential issue of shares, along with the mandatory open offer to public shareholders of RBL Bank as per applicable regulations. According to RBL Bank, the core structure of the multi-billion dollar deal includes:
Primary Capital Infusion: A massive preferential allotment of equity shares to Emirates NBD, giving them the primary 60% ownership.
Mandatory Open Offer: A subsequent open offer to public shareholders for up to an additional 26% stake, as required under SEBI takeover guidelines.
Amalgamation: The integration of Emirates NBD's existing Indian branch operations directly into RBL Bank's network.
The multi-crore capital infusion is expected to radically fortify RBL Bank's balance sheet, drastically improving its Tier-1 capital adequacy ratio and giving it the financial muscle to aggressively scale its retail, corporate, and digital banking operations across India. RBL Bank Managing Director and Chief Executive Officer R Subramaniakumar said the transaction strengthens the bank's franchise and provides a foundation for scalable and sustainable growth.
ALSO READ: Emirates NBD Announces Rs 11,735-Crore Open Offer For 26% Stake In RBL Bank
Emirates NBD said the investment reflects its long-term commitment to the Indian market and will help combine its regional banking expertise and network with RBL Bank's domestic presence, universal banking platform and distribution network.
"This transaction marks a significant milestone for Emirates NBD and reinforces our long-term commitment to India," Hesham Abdulla Al Qassim, vice chairman and managing director of Emirates NBD, said. He added that the partnership will help deepen cross-border connectivity and support trade, investment and financial flows between India and the wider region.
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