RBL Bank shares gain more than 3% as Emirates NBD is ready to purchase a majority stake. Check details

Shares of RBL Bank Ltd rose as much as 3.4% to a day’s high of Rs 300 on the NSE on Tuesday, October 14, as Emirates NDB Bank PJSC, the second largest bank in the UAE, entered advanced negotiations with RBL Bank to complete an investment of Rs 15,000 crore ($1.7 billion) and emerge as the largest and controlling shareholder of the Indian private lender, The Economic Times reported yesterday. will take the form of a preferential allotment of shares and warrants, followed by an open offer for a further 26%, the report said. The entire investment will be made through a primary capital injection to help recapitalize the bank. RBL’s current market capitalization is almost Rs 18,000 crore. Upon completion of the process, Emirates NBD is expected to ultimately own 51% of the expanded share capital base.

The transaction will expand Emirates NBD’s footprint in Asia and contribute to a strong position in the fast-growing remittance market between India and West Asia.

Kolhapur-based RBL is 100% government-owned, with several domestic institutions and mutual funds having small stakes.

Snapshot of first quarter performance

The private sector lender reported a standalone net profit of Rs 200.33 crore for the first quarter ended June 2025, down 46% year-on-year compared to a profit of Rs 371.52 crore in the corresponding quarter last year, as weaker interest income and rising costs weighed on its performance.

RBL Bank said its net interest income (NII) fell 13% year-on-year to Rs 1,481 crore from Rs 1,700 crore a year ago, and fell 5% from Rs 1,563 crore in the March quarter 2025. The bank’s net interest margin (NIM) for the first quarter of FY26 stood at 4.50%.

Operating profit fell 18% year-on-year to Rs 703 crore, with the bank attributing the contraction to a reduction in unsecured lending and the impact of the recent repo rate cut.

At around 9:50 am, the company’s shares were trading at Rs 294, up 1.35% from the last close on the NSE. Shares of RBL Bank are up an impressive 87% this year and are up more than 60% in the past month.

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