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RBL Bank’s Ambitious Leap: A $3 Billion Deal with UAE’s ENBD Bank to Join India’s Top Banking Tier

October 19, 2025
in Business
Reading Time: 3 min

In a groundbreaking move set to reshape India’s banking sector, RBL Bank, a prominent mid-sized institution, announced its ambitious plan to ascend into the league of major players. This follows the signing of a substantial $3 billion deal, which involves selling up to a 60% stake to Emirates NBD Bank, the UAE’s second-largest public sector bank. R. Subramaniakumar, MD & CEO of RBL Bank, revealed this strategic development on Sunday, October 19, 2025, emphasizing that the significant capital infusion would be a game-changer for the bank’s future.

Despite currently holding the 13th position by market capitalization, RBL Bank is not shy about its aspirations. The bank is strategically aiming to secure a spot among the top five private sector banks nationwide, a goal that this monumental partnership is designed to facilitate.

During a press conference, Subramaniakumar articulated the bank’s vision with enthusiasm: “Our aspiration is for multi-fold growth, and this capital infusion will be instrumental. We are currently a mid-size bank, but our clear goal is to elevate ourselves into the league of the country’s largest banks.”

This landmark transaction, touted as the largest in India’s banking history, is anticipated to reach completion within the next five to eight months.

Preparations are already underway, with RBL Bank poised to seek necessary approvals from key regulatory bodies including the Reserve Bank of India (RBI), SEBI, the Government of India, and the Competition Commission of India (CCI). An Extraordinary General Meeting (EGM) has been scheduled for November 12, 2025, to obtain the crucial consent of shareholders for the deal.

Following the EGM, Emirates NBD Bank plans to extend an open offer to RBL Bank’s public shareholders. The final size of Emirates NBD’s preferential allotment will be determined by the response to this offer, with the understanding that the UAE-based bank will maintain a minimum 51% stake in RBL Bank.

Upon the deal’s completion, RBL Bank will operate as an Indian subsidiary of Emirates NBD Bank, retaining its listing on Indian stock exchanges. While a name change to ENBD has not been finalized, bank officials indicated that this aspect would naturally evolve over time.

The leadership structure will also see significant changes, as Emirates NBD is expected to appoint its nominees to the board, though specific decisions on the new board composition are yet to be announced.

The substantial influx of new funds will empower RBL Bank to expand its services, particularly by venturing into corporate lending and enhancing its wealth management offerings, according to its top management.

Furthermore, a portion of the capital will be strategically allocated to bolster technological infrastructure, reinforce brand presence, and significantly strengthen its digital banking capabilities, ensuring a robust and future-ready banking experience.

Tracing its roots back 82 years to its inception in rural Maharashtra, RBL Bank, originally known as Rathnakar Bank Ltd., has demonstrated remarkable growth and resilience. Under stringent regulatory supervision and professional management, it has consistently fortified its corporate governance. This acquisition by Emirates NBD Bank marks a pivotal moment, poised to propel RBL Bank into a new era, significantly elevating its standing and influence within the global banking landscape.

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