RBL Bank shares jump 3% as UAE bank eyes stake, board meet on Oct 18

Shares of RBL Bank rose 3 per cent in Tuesday’s trade, taking their one-month gain to 10 per cent, after reports that the UAE’s second-largest bank, Emirates NBD, is exploring a majority stake acquisition. The stock touched a high of Rs 299.65 per share on BSE, up 3.27 per cent by 9.45 am.

According to media reports, Emirates NBD is in advanced discussions to invest approximately Rs 15,000 crore (around $1.7 billion) in RBL Bank, aiming to become its single largest shareholder with a 51 per cent stake. The investment would likely be executed through a preferential allotment of shares and warrants, followed by an open offer for an additional 26 per cent. This would represent a primary capital infusion to strengthen RBL Bank’s balance sheet, Economic Times reported.

If completed, Emirates NBD would emerge as the controlling shareholder in RBL Bank’s enlarged equity base. The Reserve Bank of India (RBI) has reportedly granted in-principle approval for the change of control. The deal would significantly expand Emirates NBD’s presence in Asia and bolster its position in the India–Middle East remittance corridor.

RBL Bank is scheduled to hold a board meeting on October 18 to approve its September quarter results. A formal announcement of the deal may follow then or sooner. The bank earlier denied reports of foreign investment, while noting that it continuously evaluates strategic growth options. EY and JPMorgan are advising on the transaction.

If successful, this would be among the largest mergers and acquisitions in India’s banking sector, highlighting strong foreign interest in private banking and shadow lending in the country.