Source: BS
Context:
Dubai-based Emirates NBD Bank PJSC is in talks to acquire a controlling stake (around 51%) in RBL Bank, India, for over $1 billion. The bank plans to buy 26% first from institutional investors and then make an open offer for another 25%. JP Morgan is advising Emirates NBD on the deal.
Regulatory Aspect:
- RBI rules: No shareholder can normally vote with more than 26% stake, even if owning more.
- Approval from RBI is required for the acquisition.
Why it matters:
- Marks a major Gulf bank investment in India.
- Follows similar trends, like Sumitomo Mitsui acquiring stake in Yes Bank.
- Will give Emirates NBD more presence in India’s fast-growing banking sector.
About RBL Bank:
- Founded in 1943, headquartered in Kolhapur, Maharashtra.
- Operates 562 branches and has total business of ₹2.07 trillion.
- Ownership: Retail 47.69%, domestic institutions 34.72%, foreign investors 17.56%.
About Emirates NBD in India:
- Has a loan book of ₹6,568 crore (March 2025).
- RBI allows foreign banks to operate via branches or wholly-owned subsidiaries (WOS).
- Subsidiaries are preferred for better regulation and flexibility.
