'An effective takeover of bank': Capitalmind CEO on Emirates NBD's controlling stake in RBL
RBL Bank's board approved the preferential allotment of 95.9 crore shares at Rs 280 each to Emirates NBD on Friday
- Oct 19, 2025,
- Updated Oct 19, 2025 1:08 PM IST
Capitalmind CEO Deepak Shenoy on Sunday described Emirates NBD Bank's planned Rs 26,853 crore investment in RBL Bank as "an effective takeover," as the UAE-based lender moves to acquire a controlling 60% stake in the Indian private sector bank.
RBL Bank's board approved the preferential allotment of 95.9 crore shares at Rs 280 each to Emirates NBD on Friday, giving the Dubai-based bank a majority stake and triggering a mandatory open offer for an additional 26%, under Indian takeover regulations.
"RBL gets a massive 26000 cr. primary capital infusion from Emirates bank. Current market cap is 18k cr. So they get 60% plus they have to offer a 26% further open offer," Shenoy said in a post on X.
The deal, if approved, will be the largest foreign direct investment in India's financial services sector to date. It still requires clearance from the Reserve Bank of India, which limits individual shareholder stakes in banks to 10% without special approval. "RBI will need to clear this. Any bank cannot have a shareholder owning more than 10% so they will need special permissions," Shenoy noted.
RBL Bank has signed an investment agreement with Emirates NBD dated October 18, 2025. Upon completion, the UAE bank will be classified as a promoter, and RBL Bank will become its subsidiary.
"This can take a while but note that this is an effective takeover of the bank. Effectively, it allows the bank to clean up, and scale to much more than its current size because of the capital added," Shenoy added.
In a statement, RBL Bank called the deal a "strong vote of confidence in the bank's business model, governance, and growth potential." MD and CEO R Subramaniakumar said, "This partnership secures a robust and globally respected anchor shareholder, providing a strong capital base for our future."
Shenoy concluded, "The banking space is going to get seriously competitive (I hope).”
Capitalmind CEO Deepak Shenoy on Sunday described Emirates NBD Bank's planned Rs 26,853 crore investment in RBL Bank as "an effective takeover," as the UAE-based lender moves to acquire a controlling 60% stake in the Indian private sector bank.
RBL Bank's board approved the preferential allotment of 95.9 crore shares at Rs 280 each to Emirates NBD on Friday, giving the Dubai-based bank a majority stake and triggering a mandatory open offer for an additional 26%, under Indian takeover regulations.
"RBL gets a massive 26000 cr. primary capital infusion from Emirates bank. Current market cap is 18k cr. So they get 60% plus they have to offer a 26% further open offer," Shenoy said in a post on X.
The deal, if approved, will be the largest foreign direct investment in India's financial services sector to date. It still requires clearance from the Reserve Bank of India, which limits individual shareholder stakes in banks to 10% without special approval. "RBI will need to clear this. Any bank cannot have a shareholder owning more than 10% so they will need special permissions," Shenoy noted.
RBL Bank has signed an investment agreement with Emirates NBD dated October 18, 2025. Upon completion, the UAE bank will be classified as a promoter, and RBL Bank will become its subsidiary.
"This can take a while but note that this is an effective takeover of the bank. Effectively, it allows the bank to clean up, and scale to much more than its current size because of the capital added," Shenoy added.
In a statement, RBL Bank called the deal a "strong vote of confidence in the bank's business model, governance, and growth potential." MD and CEO R Subramaniakumar said, "This partnership secures a robust and globally respected anchor shareholder, providing a strong capital base for our future."
Shenoy concluded, "The banking space is going to get seriously competitive (I hope).”