Just two months after it denied eyeing a minority stake in RBL Bank, reports have resurfaced about Emirates NBD, the second-largest bank in the UAE, in advanced level of negotiations with the Mumbai-based lender for a controlling stake. The purchase could be executed via Emirates NBD’s Indian subsidiary.
What’s interesting is that RBL Bank doesn’t have a promoter group as it’s fully owned by public shareholders, making this takeover pretty unique.
The deal, the size of which could not be ascertained, could happen through a preferential share issue. Any agreement would trigger a mandatory open offer under the takeover rules and requires the Reserve Bank of India’s (RBI) approval. The RBI, sources said, is open to approving the deal.
RBL Bank’s board is meeting on October 18 to approve its quarterly and half-yearly results ended September 2025.
RBL Bank’s shares have been on fire over the past couple of months ever since the buzz over Emirates stake became public. It closed flat at Rs 289.20 on the NSE on Monday. The bank has a market cap of Rs 17,728 crore, as per data from NSE.
RBL Bank did not immediately respond to requests for comment but sources said the central bank is likely to cap the voting rights of Emirates NBD at 26% due to regulatory requirements.
The RBI is considering possible rule changes to allow higher foreign ownership in Indian banks, amid overseas buyers’ interest and India’s need for long-term capital. Under current regulations, foreigners, including portfolio investors, can own up to 74%, but a strategic foreign investor is limited to 15%.
In May, however, the RBI made an exception to allow Japan’s Sumitomo Mitsui Banking Corp (SMBC) to buy a 20% stake in Yes Bank. SMBC agreed to acquire a further 4.2% stake in September. Earlier too, the central bank allowed the struggling Lakshmi Vilas Bank and forced its merger with the local subsidiary of Singapore’s largest lender DBS Bank. In 2018, Prem Watsa’s Fairfax was allowed to acquire a 51% stake in ailing Catholic Syrian Bank.