R Subramaniakumar, Managing Director (MD) and Chief Executive Officer (CEO) of RBL Bank | Photo credit: REUTERS/FRANCIS MASCARENHAS
RBL Bank sees an opportunity to start an asset management business after Emirates NBD bought a 60 percent stake for $3 billion, CEO R Subramaniakumar said on Sunday.
The Middle Eastern bank will invest ₹26,853 crore in the private lender through a preferential share issue in the deal announced on Saturday, the largest cross-border acquisition in the Indian financial sector.
The deal is the latest in a series of cross-border deals in India this year as India looks to attract foreign investment and strengthen the country’s mid-sized banks. Months earlier, Japan’s Sumitomo Mitsui Banking Corp decided to buy up to 25% of Yes Bank.
“We aim to become a major bank after Emirates NBD’s investment,” Subramaniakumar told a news conference.
He said RBL’s management will continue during the transition period.
RBL Bank hopes to receive the first tranche of funding within five to seven months, said Jaydeep Iyer, the bank’s chief strategy officer. He said the merger will be effective from April and RBL will be a listed subsidiary of Emirates NBD.
India allows 74% foreign investment in private banks, but limits shareholdings in a single foreign institution to 15% unless the regulator, the Reserve Bank of India, grants an exemption. The RBI has informally expressed its support for the ENBD deal, sources told Reuters last week.
ENBD is expected to launch an open offer for additional shares from private shareholders, ahead of a preferential issue, Iyer said.
Post-acquisition, RBL Bank’s capital adequacy ratio will be 40%, he said.
Published on October 19, 2025
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