'Exciting times': Uday Kotak welcomes move to open banking to global investors
Emirates NBD Bank has proposed to acquire a 60 per cent stake in RBL Bank for about Rs 26,853 crore, the largest-ever foreign direct investment in India's financial services sector
- Oct 19, 2025,
- Updated Oct 19, 2025 3:20 PM IST
Kotak Mahindra Bank founder and Managing Director Uday Kotak on Sunday welcomed the Reserve Bank of India's move to allow global financial institutions to acquire a majority stake in Indian banks, calling it a step that could unlock new capacity for growth in the sector.
"I welcome opening up of the banking sector to global financial institutions for majority stake. This, along with ensuring guardrails to manage conflict of interest, and providing a level playing field to players, will unleash capacity to serve India’s aspirations. Exciting times," Kotak wrote in a post on X.
Emirates NBD Bank has proposed to acquire a 60 per cent stake in RBL Bank for about Rs 26,853 crore, the largest-ever foreign direct investment (FDI) in India's financial services sector. The Dubai-based lender's proposed infusion of USD 3 billion (approximately Rs 26,850 crore) would give it a controlling stake in RBL Bank, marking a landmark deal in the Indian banking space.
Complete Circle CIO Gurmeet Chadha said the development marks the beginning of a new wave of reforms in Indian banking. "BIG Bank Reforms are getting loaded," he wrote on X. "Emirates NBD and RBL Bank deal signals a big shift in RBI thought process. Largest FDI in banks and equity infusion ever. This and Sumitomo–Yes Bank deal can open global fund-raising options for Indian banks which are currently very limited."
Eventually, the fund manager added, more reforms on even voting rights capped at 26% and 9.99% stake for corporate investors will also be re-looked.
The board of RBL Bank, while approving its quarterly financial results, also cleared the proposal to raise up to Rs 26,853 crore from Emirates NBD through a preferential issue of up to 95.9 crore fully paid-up equity shares at Rs 280 per share. The issue represents 60 per cent of the bank's post-preferential equity capital.
Following the transaction, Emirates NBD will acquire control of RBL Bank, which will then be classified as a subsidiary of a foreign bank, subject to regulatory approvals. The bank's board has also approved an increase in authorised share capital from Rs 1,000 crore to Rs 1,800 crore.
The deal comes close on the heels of Japan's Sumitomo Mitsui Banking Corporation (SMBC) acquiring a 24.9 per cent stake in Yes Bank for Rs 16,333 crore, signalling growing interest from global institutions in India's private banking sector.
Kotak Mahindra Bank founder and Managing Director Uday Kotak on Sunday welcomed the Reserve Bank of India's move to allow global financial institutions to acquire a majority stake in Indian banks, calling it a step that could unlock new capacity for growth in the sector.
"I welcome opening up of the banking sector to global financial institutions for majority stake. This, along with ensuring guardrails to manage conflict of interest, and providing a level playing field to players, will unleash capacity to serve India’s aspirations. Exciting times," Kotak wrote in a post on X.
Emirates NBD Bank has proposed to acquire a 60 per cent stake in RBL Bank for about Rs 26,853 crore, the largest-ever foreign direct investment (FDI) in India's financial services sector. The Dubai-based lender's proposed infusion of USD 3 billion (approximately Rs 26,850 crore) would give it a controlling stake in RBL Bank, marking a landmark deal in the Indian banking space.
Complete Circle CIO Gurmeet Chadha said the development marks the beginning of a new wave of reforms in Indian banking. "BIG Bank Reforms are getting loaded," he wrote on X. "Emirates NBD and RBL Bank deal signals a big shift in RBI thought process. Largest FDI in banks and equity infusion ever. This and Sumitomo–Yes Bank deal can open global fund-raising options for Indian banks which are currently very limited."
Eventually, the fund manager added, more reforms on even voting rights capped at 26% and 9.99% stake for corporate investors will also be re-looked.
The board of RBL Bank, while approving its quarterly financial results, also cleared the proposal to raise up to Rs 26,853 crore from Emirates NBD through a preferential issue of up to 95.9 crore fully paid-up equity shares at Rs 280 per share. The issue represents 60 per cent of the bank's post-preferential equity capital.
Following the transaction, Emirates NBD will acquire control of RBL Bank, which will then be classified as a subsidiary of a foreign bank, subject to regulatory approvals. The bank's board has also approved an increase in authorised share capital from Rs 1,000 crore to Rs 1,800 crore.
The deal comes close on the heels of Japan's Sumitomo Mitsui Banking Corporation (SMBC) acquiring a 24.9 per cent stake in Yes Bank for Rs 16,333 crore, signalling growing interest from global institutions in India's private banking sector.