The finance ministry has approved Dubai-based Emirates NBD Bank's proposal to acquire up to 74 per cent stake in private sector lender RBL Bank, PTI reported citing a regulatory filing on Friday.
RBL Bank said Emirates NBD Bank (P.J.S.C) has received a letter from the Department of Financial Services dated May 14, 2026 approving the proposed acquisition. The approval allows investment in excess of 49 per cent and up to 74 per cent of the total paid-up equity share capital of RBL Bank.
The clearance comes a day ahead of Prime Minister Narendra Modi's official visit to the UAE. This strategic timing underscores the strengthening economic ties between India and the United Arab Emirates.
"The proposed investment by Emirates NBD Bank in RBL Bank by way of a preferential issue of equity shares remains subject to completion of the customary conditions," the filing said.
Regulatory Approvals
Last month, the Reserve Bank of India (RBI) had also approved Emirates NBD Bank's plan to acquire up to 74 per cent stake in RBL Bank. According to the RBI approval, Emirates NBD would be required to acquire and maintain at least 51 per cent shareholding in RBL Bank. Following the transaction, RBL Bank would be classified as a foreign bank in subsidiary mode, with Emirates NBD as the parent foreign bank.
Earlier in January, the Competition Commission of India (CCI) had cleared Emirates NBD Bank's proposal to acquire a majority stake in RBL Bank. The CCI approval was a key milestone in the acquisition process, ensuring no competition concerns.
Deal Background
The UAE's second-largest bank had expressed interest in October 2025 to acquire a majority 60 per cent stake in RBL Bank for Rs 26,853 crore. The revised proposal now allows Emirates NBD to acquire up to 74 per cent, indicating a stronger commitment to the Indian market.
Emirates NBD's move into India reflects its expansion strategy in high-growth markets. RBL Bank, with its strong retail and corporate banking presence, stands to benefit from Emirates NBD's global expertise and capital strength.
The deal is expected to enhance RBL Bank's product offerings, technology infrastructure, and customer service. It also aligns with India's policy of allowing higher foreign investment in private banks under certain conditions.
