“The Emirates NBD Group has probably received approximately 26% of RBL Bank from institutional investors and then will make an open offer for another 25%,” one of the persons said. If the transaction successfully closes, the government in Dubai will end up with a domestic creditor around 51% of the share. Global Investment Bank JP Morgan advises Emirates NBD to agreement.
The discussion is underlined by multinational financial companies growing fascination by India. Japanese Sumitomo Mitsui Banking Corp. Recently, it has gained a 20% stake in YES Bank and Mizu’s Financial Group is said to be gaining Avendus financial services.
However, the Indian reserve bank, if approved by the Emirates-RBL agreement, is likely to limit the Voting Rights of the Dubai entity to 26% due to the “regulatory requirements”, the other person said.
With me
- Emirates NBD Eyes Majorita 51% Share in RBL Bank for more than $ 1 billion.
- RBI is likely to limit the voting rights of the Dubai entity to 26% due to regulations.
- The potential RBL agreement emphasizes the growing interest in multinational financial companies in the Indian market.
- The interviews proceeded after the acquisition of ANO Bank Bank Specitomo Mitsui Banking Corp.
- RBL Bank, currently without promoter, is fully owned by various public shareholders.
The RBI circle stated in January 2023 that no shareholder of the bank could exercise voting rights above 26%. Normally nephroters-units or non-financial institutions at the bank buy up to 10%, while financial institutions can buy up to 15%. However, RBI “may also allow a higher share on the basis of the case”, said in the above circulation.
Emirates NBD and RBL bank questions remained unanswered, while JP Morgan spokesman refused to express himself.
Yes, bank pressure
The interviews between these two picked up after Sumitomo completed 20% of the acquisition in banks in September. The Japanese company also signed an agreement with CA Basque Investments, a company associated with the Carlyle Group Inc., to obtain an additional 4.2% in ANO banks, thus increasing its total share to 24.2%. In August, RBI approved the SMBC proposal for up to 24.99% in ANO Bank. The discussion between Emirates and RBL Bank rose after YES Bank agreement, the first person said.
RBI Governor Sanjay Malhotra told CNBC TV18 in July that the central bank had not yet received any case where a foreign bank wanted to own 26% in Indian banks. “According to FDI policy, foreign banks are allowed up to 74%. Foreign banks can certainly have a 26% stake in the Indian bank,” he said.
There were very few cases where foreign banks acquire Indian creditors.
The central bank confiscated the YES bank in March 2020 after its financial situation deteriorated and supervised its acquisition by a link by banks led by the state bank of India. In August, Mint reported that the YES Bank-SMBC can prepare a way for similar transactions.
At the beginning of November 2020, the RBI seized the fighting Lakshmi Vilas Bank (LVB) and forced its merger with the local Singaporean unit of the largest lender of DBS. This was the first time that the central bank tapped the bank with a foreign parent to stop the Indian opponent.
RBL Bank has no promoter and is fully owned by public shareholders. At the end of June, retail investors owned 47.69%in the bank, followed by domestic institutional investors at 34.72%, foreign institutional investors 17.56%and insurance companies at 3.26%.
Emirates in India
The discussion between RBL and Emirates NBD comes hardly five months after RBI granted the Dubai bank in principle to establish a subsidiary completely owned in India.
In July, Economic Times stated that Emirates NBD was negotiating an important minority share in RBL Bank.
India enables foreign banks to operate either as a branch or as a completely owned subsidiary of the parent. Everyone except two – DBS Bank India and SBM Bank India – work as branches. The local unit gives the bank more flexibility than a branch. The central bank prefers foreign banks of operating subsidiaries rather than branches in India.
In 2018, Fairfax India, a local unit of Canadian fairfax, received a 51% stake in CSB Bank LTD, then calls the Catholic Syrian bank (CSB). He currently has 40%in the bank.
In India Emirates NBD reported a credit book £6 568.2 Crore K 31. March 2025, according to its last available annual report, up from £4 641.6 crore in FY24.
RBL Bank has closed market capitalization £17 728.56 crore or around $ 2 billion on Monday. Stocks dropped by 0.82% to £289.20 and share over Friday closure to NSE.
RBL Roundup
RBL was founded as Ratnakar Bank LTD in 1943 in Maharashtra’s Kolhapur AK 30. June operated 562 branches. Its total shop (loans plus deposits stood £2,07,165 crore.
According to the initial trading numbers reported by the bank on October 3, its deposits stood £1.16 trillion, by 8% of the same period last year. The total loans were on £1.02 trillion, year -on -year by 14% (year -on -year). The ratio of capital adequacy at the end of June (the latest available) was 15.59%, compared to 15.56% a year earlier and 15.54% in the March quarter. By comparison, the ratio of capital adequacy of banks was 16.2%at the end of June.
The issue of September 2025 according to the care evaluation shows that the bank has a portfolio including corporate and institutional banking (C & IB), credit cards, commercial banking (CB), commercial loans and micro loans, and expanding into newer secured products such as housing loans, LAP (LAP). In Q1 FY26, RBL Bank recorded a year -on -year growth of 5% in the retail segment and 15% in the wholesale segment, resulting in a total growth of 9%.
(Tagstotranslate) rbl bank
