The control of an Indian bank is now going into the hands of a Dubai bank. The Finance Ministry has also given approval to acquire majority stake in this bank. The Government of India has granted a significant regulatory approval to Dubai-based Emirates NBD to acquire controlling stake in RBL Bank, the largest Foreign Direct Investment (FDI) in the history of India’s financial services sector.
In a notification to the stock exchange on May 15, 2026, RBL Bank Said that the Finance Ministry has approved the investor’s proposal to hold stake between 49% and 74% of the total paid-up equity share capital of the bank.
This deal is going to be done for around $3 billion (Rs 26,850 crore). This deal was first initiated through an investment agreement on October 18, 2025. Under this transaction, Emirates NBD may gain control of the board and a strategic strong position in India’s rapidly growing private banking sector.
Special features of this deal
- This acquisition is being done through primary capital investment and mandatory open offer.
- Emirates NBD will buy approximately 959 million new equity shares at a price of ₹280 per share.
- This primary investment will give Dubai Bank an initial controlling stake of up to 60% in the expanded equity capital of RBL Bank.
- Following the preferential issue, Emirates NBD will launch an open offer to public stockholders to acquire additional stake up to 26%.
- The total stake may technically exceed 75%, but the final stake will remain within the regulatory limit of 74% prescribed for foreign investment in private sector banks.
NBD will merge with RBL in India
Under this deal, there will be a proposed merger of the existing branches of Emirates NBD in India with RBL Bank, which will create a unified and stronger balance sheet. By the end of 2025, RBL Bank was operating a network of 564 branches and serving more than 1.5 crore customers. This capital infusion of $3 billion is expected to significantly grow the Bank’s Tier-1 capital ratio and provide the necessary long-term development capital to expand its digital, corporate loan and fund management services.
Now waiting for RBI approval
Finance Ministry approval has been a significant hurdle, but approval has now been granted and the transaction is subject to final approval from the Reserve Bank of India (RBI) and fulfillment of normal closing conditions. Shareholders of RBL Bank had already expressed overwhelming support for the move, with 99.9% in favor of the merger and 98.8% approving the preferential issue at an extraordinary general meeting held in November 2025.
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Source: www.aajtak.in
