ENBD, RBL Bank meet in Mumbai to shape post-investment plan: Senior executives of RBL Bank and Dubai-based Emirates NBD (ENBD) held talks in Mumbai to discuss the broad contours of RBL’s business plan following an ENBD investment, Business Standard reports. This follows a move by ENBD to acquire a controlling stake in the private-sector Indian lender.

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The transaction: ENBD will execute the transaction through an investment of about INR 26.85 bn (USD 3 bn) via a preferential issue of up to 60% in RBL Bank. In line with India’s regulations, the Dubai lender will also launch a mandatory open offer for an additional 26% from existing shareholders.

What’s next? Discussions focused on early-stage planning for the post-investment phase, though a detailed roadmap will depend on approval timelines and the outcome of the upcoming open offer. The capital infusion is expected to strengthen RBL Bank’s balance sheet and support its medium-term growth strategy once regulatory approvals are secured.

BACKGROUND: Emirates NBD’s open offer for public shareholders will run from 12-26 December at an offer price of INR 280 per share. The RBL’s board had earlier cleared a plan for Emirates NBD to acquire 51-74% of RBL through the USD 3 bn preferential issue, with the final stake dependent on open-offer subscription levels.

ENBD’s CEO speaks on the deal-

ENBD’s Group CEO Shayne Nelson in an interview with Economic Times outlined the strategic rationale for the bank’s USD 3bn push into India, citing the country’s need for substantial capital expansion as the country is projected to become a USD 7 tn economy by 2030.

Key takeaways:

  • Nelson sees the RBI’s openness to a foreign bank taking a majority stake as a reflection of India’s confidence in its financial sector and crucial for attracting this strategic investment despite a 26% voting cap on foreign investors
  • Nelson suggests that removing that voting cap would further boost confidence and capital inflows to the sector.
  • ENBD sees a universal banking model for RBL focusing on wealth management, expanding corporate banking using global relationships, and leveraging the strong NRI corridor between India and the GCC, which accounts for 50% of NRI flows to India. ENBD already has a significant Indian customer base globally, he added.
  • ENBD’s USD 3bn investment will significantly boost RBL’s capital from the current USD 1.8 bn to support a lending book of up USD 25 bn. Leveraging that capital is the top priority, he added.
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