UAE-India financial ties just took another step. India’s competition watchdog approved Emirates NBD’s (ENBD) proposed acquisition of a majority stake in the country’s RBL Bank, clearing a key regulatory hurdle for the USD 3 bn transaction, according to a statement by the Competition Commission of India. The approval also covers the merger of RBL’s 600 strong branch network with ENBD’s India entity which holds 3 branches.

Refresher: The clearance covers ENBD’s plan, first revealed in October, to acquire between 51-74% of RBL Bank through a preferential allotment and mandatory open offer. If completed, ENBD would become classified as a promoter, with RBL becoming a subsidiary — a rare outcome in India’s tightly regulated banking sector.

The Dubai-based lender launched an open offer to acquire 26% of the stake in December while the rest of the acquisition will be done through a preferential allotment. Meanwhile, the RBL bank has implemented a leadership change appointing Jaideep Iyer as its executive director who will take charge on 21 February. The bank has also appointed Deepak Ruiya as its interim CFO beginning 30 December.

India’s rules, in context: Foreign ownership in Indian private banks is capped at 74%, but any single foreign institution typically needs explicit regulatory approval to cross the 15% threshold. RBL had previously sought permission to temporarily cap foreign shareholding at 24% until the agreement closes.

What’s next: The transaction is expected to close in 1Q of India’s fiscal year 2026-27, which starts in April, pending final clearances from the Reserve Bank of India and the government.

Why it matters: If completed, the agreement would be the largest foreign investment in India’s financial sector and the first time a foreign bank takes control of a solvent Indian private lender, setting a precedent for inbound banking capital. It would also sharply expand Emirates NBD’s footprint beyond its current three-branch presence in Mumbai, Gurugram, and Chennai.

ZOOM OUT- The approval lands amid accelerating UAE-India economic ties, after the two sides inked a sweeping (more on that below) this week spanning energy, defense, space, food trade, investment, digital infrastructure, and advanced technology, while lifting their bilateral trade target to USD 200 bn by 2032.

The ENBD-RBL agreement adds a financial-services pillar to that expanding partnership, reinforcing India’s role as a priority growth market for UAE capital.

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