Emirates NBD eyes controlling stake in RBL Bank with $1.7 billion investment deal: Report

Emirates NBD Bank PJSC is poised to become the controlling shareholder of RBL Bank through a Rs 15,000 crore ($1.7 billion) investment that would recapitalise the struggling Indian lender and give the UAE-based bank a majority stake, as per a report by The Economic Times.

The deal, currently in advanced stages of negotiation, involves a preferential allotment of equity shares and warrants, followed by an open offer to acquire an additional 26% stake. Upon completion, Emirates NBD is expected to hold 51% of RBL Bank’s expanded equity, the report added. The Reserve Bank of India has already granted in-principle approval for the change of control, as per the report.

Business Today was unable to verify the development independently.

The capital infusion, entirely through primary issuance, would significantly strengthen RBL Bank’s balance sheet after a sharp 46% year-on-year drop in net profit for Q1 FY26, driven by falling interest income and rising 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 13% to Rs 1,481 crore, while Net Interest Margin dropped to 4.50%. Asset quality also deteriorated, with gross NPA rising to 2.78% from 2.6% and net NPA climbing to 0.45% from 0.29%.

RBL Bank acknowledged challenges in its credit card portfolio and reiterated plans to calibrate growth in unsecured lending to stabilise asset quality. However, it said liability growth remained strong and consistent.

The acquisition marks a strategic move by Emirates NBD to deepen its presence in Asia and capitalize on the India-Middle East remittance corridor. According to RBI data, Indians in GCC countries account for half of the global Indian migrant population. The UAE alone contributed half of the $38.7 billion India received in remittances from the Gulf in FY24, making it India’s second-largest source of foreign remittances globally.

RBL Bank, based in Kohlapur, is entirely publicly owned, with no single dominant shareholder. Its board is scheduled to meet on October 18 to approve financial results for the September quarter, and a formal announcement of the Emirates NBD deal is expected on or before that date.