Local banks are still not in risk-off mode. Emirates NBD is moving full steam ahead with its planned USD 3 bn acquisition of a 60% stake in India’s private sector lender RBL Bank, with the bid reportedly securing approval from the Reserve Bank of India, the Economic Times reports, citing people it says are in the know. This came one week after the Central Bank of the UAE also signed off on the transaction, the ET said.

The Indian central bank approved Emirates NBD’s acquisition of at least 74% of RBL, Reuters reported, citing a statement from RBL. Voting rights, however, will be capped at 26% of the bank’s total voting rights.

What’s next? The acquisition is also reportedly on track for approval from the Securities and Exchange Board of India, the country’s capital markets watchdog, with a mandatory open offer likely as early as next week.

Background: The takeover ran into regulatory friction earlier this year, triggering change-of-control reviews across India’s capital markets stack. The transaction — structured via a preferential equity issue of roughly INR 268.5 bn — also activates a mandatory open offer for up to an additional 26% at INR 280 per share. Emirates NBD shareholders signed off in February on folding the bank’s three-branch India network (Mumbai, Gurugram, and Chennai) into RBL.

REMEMBER- If the acquisition goes through, it would see Emirates NBD become the first foreign lender to take majority control of a profitable listed Indian bank.

Beyond its India M&A push, the local bank is also beefing up its funding base with a USD 2.25 bn syndicated loan secured earlier this week at record-tight spreads.

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