RBL Bank stake agreement moves forward: With its 3 bn acquisition of RBL Bank, Emirates NBD (ENBD) views India as a core strategic market for its long-term growth, as the country’s fast growing economy and rising credit demand requires stronger capitalized banks, group CEO Shayne Nelson told Economic Times in an interview.

REMEMBER- ENBD is acquiring a majority stake in Mumbai-based private lender RBL Bank, facilitated by special regulatory approvals.

Regulatory context: The Reserve Bank of India’s (RBI) willingness to permit a well-capitalized foreign bank to acquire a majority in an Indian private lender signals confidence in the country’s banking system, Nelson said. RBI’s stance offers long-term clarity for foreign players to make major investments in the Indian banking system, he added. ENBD is keen to expand its stake to 74% if regulators permit going beyond the existing cap.

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India’s growing economy will require substantial new capital, and unlike China’s state-funded model, India will depend more on domestic and foreign private-sector investment to support credit demand, Nelson told the daily.

Why RBL? ENBD evaluated other Indian banks but chose RBL because the transaction structure allowed meaningful control, whereas others like Yes Bank and IDBI Bank would not support majority ownership under their existing shareholder frameworks. The regulatory openness to a majority stake acquisition, combined with the compelling India growth narrative and institutional strength, was the deciding factor enabling ENBD to make a long-term commitment, Nelson told the daily.

The takeover gives ENBD access to RBL’s branch network to tap a large corporate client base and better serve its existing customers.

Structure + timeline: The lender will merge its three existing branches in India — mainly serving crossborder transactions — into RBL, which would then operate as a subsidiary of ENBD as per India’s regulatory framework. Emirates NBD will comply with the 26% cap on voting rights while retaining economic control through consolidation. The transaction is expected to close by end-1Q or early 2Q 2026, subject to regulatory approvals, Nelson told the news outlet.

Strategic focus: The investment will increase RBL’s capital base from USD 1.8 bn to about USD 4.8 bn, which will support an expanded lending book of up to USD 25 bn.Following the merger of branches, the bank will prioritize corporate banking, SMEs, agriculture, wealth management, and investment banking, leveraging ENBD’s existing client base and a strong India-GCC remittance corridor, which Nelson said accounts for around half of remittance flows to India. The lender has applied for a merchant banking license and plans to expand its presence at Gujarat’s GIFT City.

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