In a major development for the financial landscape, Dubai-based Emirates NBD is preparing to purchase a 60% controlling stake in the Indian private sector lender, RBL Bank. This substantial acquisition, valued at an impressive 268.53 billion Indian rupees (roughly $3.05 billion), will be executed through a preferential issue of shares, as confirmed by RBL Bank in an exchange notification.
This deal marks the largest by a Middle Eastern bank in India and comes just months after Japan’s Sumitomo Mitsui Banking Corporation’s own move to acquire up to 25% of Yes Bank, signaling a growing trend of international investment within India’s banking sector. RBL Bank has stated that the acquisition is contingent on receiving all necessary regulatory approvals. However, reports from Reuters indicate that the Reserve Bank of India, the country’s central banking authority, has already provided informal backing for the transaction.