Emirates NBD (PJSC) is poised to become the controlling shareholder in RBL Bank through a Rs 15,000-crore ($1.7 billion) investment that will recapitalize the troubled Indian bank and give the UAE-based lender a majority stake, according to a report by Emirates NBD. Economic times.
The deal, which is currently in advanced stages of negotiation, includes a preferential allotment of shares and warrants, followed by an open offer to acquire an additional 26% stake. The report added that upon completion of the project, Emirates NBD is expected to own 51% of the enlarged shares of RBL Bank. The Reserve Bank of India has already given in-principle approval for the change of control, according to the report.
Business today He was unable to independently verify the development.
The capital infusion, entirely through the initial issue, would significantly strengthen RBL Bank’s balance sheet following a sharp 46% year-on-year decline in net profit for Q1FY26, driven by lower interest income and higher expenses.
The bank reported a standalone net profit of Rs 200.33 crore for the quarter ended June 2025, compared to Rs 371.52 crore in the same period last year. Net interest income fell by 13% to Rs 1,481 crore, while net interest margin fell to 4.50%. Asset quality also deteriorated, with gross non-performing assets rising to 2.78% from 2.6% and net non-performing assets rising to 0.45% from 0.29%.
RBL Bank acknowledged the challenges facing its credit card portfolio and reiterated its plans to calibrate growth in unsecured lending to stabilize asset quality. However, it said the growth in commitments remained strong and consistent.
The acquisition represents a strategic move by Emirates NBD to deepen its presence in Asia and benefit from the remittance corridor between India and the Middle East. According to data from the Reserve Bank of India, Indians in the Gulf Cooperation Council countries represent half of the number of Indian immigrants in the world. The UAE alone contributed half of the remittances India received from the Gulf in fiscal year 2024, which amounted to $38.7 billion, making it the second largest source of foreign remittances to India in the world.
RBL Bank, headquartered in Kohlapur, is wholly publicly owned, with no single dominant shareholder. Its Board of Directors is scheduled to meet on October 18 to approve the financial results for the September quarter, and the official announcement of the Emirates NBD deal is expected on or before that date.
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