Emirates NBD Plans ₹15,000 Crore Takeover for Majority Stake in RBL Bank

Dubai's biggest bank may soon hold control of an Indian private lender for the first time

Is it common for a foreign bank to try and own an Indian lender? Not really. The news of Emirates NBD planning to take majority control in RBL Bank has turned many heads in the finance world. It could become the first such takeover by a foreign player, making it a possible turning point for the Indian banking space.

A Reuters report dated 13 October 2025 stated that Emirates NBD, Dubai’s largest banking group, is aiming to acquire around 51 percent in RBL Bank through a combination of preferential share allotment and an open offer.

This would make it the largest Dubai bank investment in Indian banking sector history.

Emirates NBD ₹15,000 Crore Deal: Key Figures 

The proposed transaction is not just a capital boost but a control strategy. Emirates NBD plans to pump in up to ₹15,000 crore into RBL Bank. This would come through two parts, first, direct shares from institutional investors and second, an open offer to buy shares from the public.

Here’s what the numbers show:
 

This deal is being closely followed because it could challenge the Reserve Bank of India’s standard rules on foreign bank ownership.

Why This Move is Essential for Indian Banking?

RBL Bank has not had a promoter group since its transition from a co-operative bank. This makes it easier for outside investors to take charge without the legal tangles of family-led ownership.

Emirates NBD’s expansion strategy in India 2025 has already been in motion. In May 2025, the Reserve Bank of India gave it in-principle approval to set up a wholly owned subsidiary in the country. If this RBL Bank acquisition goes through, Emirates NBD could convert RBL into its main Indian operation.

RBL’s recent financial performance shows why this deal could help both sides.
 

This decline makes it clear that RBL needs fresh capital and better operational support. Emirates NBD could bring both, along with new systems and digital infrastructure.

Past Deals Show a Shift in RBI’s Thinking

In 2024, Japan’s Sumitomo Mitsui Banking Corporation took a 20 percent stake in Yes Bank. That move also needed RBI’s nod and required changes to Yes Bank’s board. Back then, the RBI allowed a foreign investor to get a big seat at the table.

In the case of RBL, reports by Moneycontrol suggest that Emirates NBD could seek five seats on the RBL Bank board. This will allow it to directly influence business decisions and drive the bank’s future plans.

For reference, see our past story on Yes Bank’s foreign ownership deal here.

The RBI has taken a slightly open view in recent years, especially for mid-size banks that require capital and stronger governance. Still, no clear public statement has been made by the central bank as of mid-October 2025 on this specific deal.

Market Reaction Shows a Positive Outlook

The Indian stock market welcomed the news. RBL Bank’s shares gained over 7% in just two trading sessions after the reports broke.
 

The rally shows investor confidence in the bank’s future under foreign control. However, many are still waiting for the actual terms of the open offer and clarity on pricing.

What Is Still Not Clear in This Deal?

While most headlines focus on the deal amount and stake, many things remain unsaid in public. The exact valuation method and share pricing are not yet disclosed.

Reports suggest a possible pricing of ₹295 per share, but this remains speculative. That pricing may impact minority shareholders depending on how the open offer is structured.

There are also doubts on how equity dilution will affect existing public shareholders. Since the deal involves fresh equity, shareholding will shift even before the open offer is triggered.
 

Until these questions are answered, the market will continue to speculate.

RBL’s Position: Between Survival and Growth

RBL’s recent quarterly results have shown that interest income and profits are under pressure. In that context, backing from Emirates NBD could bring much-needed stability.

But this deal raises bigger questions about foreign control in India’s banking sector. Though foreign banks have been allowed to expand, they rarely get permission to hold a majority stake in an Indian bank.

If this deal is approved, it could set a new precedent for how India handles global investment in its financial system. As LoansJagat notes in “This Will Help Foreign Investors Planning to Invest in India; Know All The Details”, recent policy moves and regulatory changes are facilitating easier entry for foreign capital into Indian markets. 

Conclusion

The proposed Emirates NBD acquisition of RBL Bank is not only about numbers. It reflects a possible change in policy thinking. If allowed, it may give way for more such deals in mid-size banks that lack deep-pocketed Indian promoters.

While the RBI is yet to make its position clear, this deal could become a milestone in how India manages global interest in its banking sector.
 

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‘Simplify Finance for Everyone.’ This is the common goal of our team, as we try to explain any topic with relatable examples. From personal to business finance, managing EMIs to becoming debt-free, we do extensive research on each and every parameter, so you don’t have to. Scroll up and have a look at what 15+ years of experience in the BFSI sector looks like.