India’s central bank has approved Emirates NBD Bank’s proposal to acquire a majority stake in RBL Bank, the Mumbai-based lender said on Thursday, giving a key regulatory clearance for one of the largest cross-border deals in India’s financial sector.
The Reserve Bank of India approved Emirates NBD to acquire up to 74% of RBL Bank’s share capital, requiring it to maintain at least 51% ownership. RBI capped Emirates NBD’s voting rights at 26% of RBL Bank’s total voting rights.
In October last year, Emirates NBD announced plans to buy a 60% stake in the Indian lender for $3 billion.
The bank will invest 268.53 billion Indian rupees ($3.05 billion) in the Indian lender through a preferential issue of shares and will have the right to nominate directors to the board, RBL Bank had said.
RBL Bank will be classified as a foreign bank subsidiary with Emirates NBD as its parent, the RBI said. It will be governed by norms for wholly-owned foreign subsidiaries, but will be exempt from the requirement that at least half of the attending board members be independent directors.
India’s competition regulator cleared the deal in January. The RBI approval is valid for one year.
Dealmaking in India’s financial services sector has gained momentum over the past year. The approval comes as Gulf-based businesses face disruptions due to the ongoing war in the region.
As of December 2025, RBL Bank had assets of 1.57 trillion rupees ($17.08 billion) and deposits worth 1.19 trillion rupees ($12.95 billion), according to an investor presentation for the quarter ended December.
Reuters
