RBL Bank shares rise 5% to 52-week high after Q2, Emirates NBD’s Rs 26,853 crore purchase

Shares of Mumbai-based private lender RBL Bank rose 5% to their new 52-week high of Rs 314.65 on the BSE on Monday, October 20, following two major developments – the bank’s September quarter results and a landmark investment deal with Emirates NBD Bank.

For the quarter ended September 2025 (Q2FY26), RBL Bank’s net interest income (NII) was broadly in line with expectations, supported by a marginal increase in net interest margin (NIM), which rose 1 basis point sequentially to 4.51%, compared to 4.50% in the previous quarter. Operating profit before provisions (PPOP) growth was helped by a moderation in operating costs, but higher provisions impacted profitability, leading to a 20% year-on-year decline in profit after tax (PAT).

Additionally, RBL Bank has announced a strategic investment by Emirates NBD, which will acquire a 60% stake in the lender through a preferential share issue worth Rs 26,853 crore (approximately $3 billion) at Rs 280 per share. The bank’s board has approved the issuance and allotment of 96 crore new shares to the Dubai-based banking group.

The transaction marks several milestones: it is the largest ever foreign direct investment (FDI) in the Indian financial services sector, the largest equity fundraise by an Indian bank, the largest preferential issuance by a listed company and the first time a foreign bank has acquired a majority stake in a profitable Indian private sector lender.

As per regulatory requirements, Emirates NBD will also make a mandatory open offer to acquire an additional 26% stake in RBL Bank at the same price. Both boards have also approved the merger of ENBD’s Indian branches with and into RBL Bank, subject to approval by the Reserve Bank of India. Once completed, Emirates NBD will become the promoter of RBL Bank and will have the right to nominate directors to the board.

The capital infusion is expected to triple RBL Bank’s net assets from over Rs 15,000 crore to around Rs 42,000 crore, thereby strengthening capital ratios, improving credit ratings, reducing cost of funds and supporting branch expansion and digital initiatives. Emirates NBD said the investment underlines confidence in India’s fast-growing financial sector and strengthens India’s strategic role within the India-Middle East-Europe economic corridor. (IMEC). The partnership combines ENBD’s strong capital base and international reach with RBL Bank’s established domestic presence, creating a platform for future growth and innovation. Chandan Sinha, Chairman of RBL Bank, said the deal marks a defining moment in the bank’s transformation journey, while Shayne Nelson, CEO of Emirates NBD Group, said the investment reflects their confidence in the growing Indian economy and will help support Indian businesses and trade in the MENATSA region.

Together, the steady quarterly performance and record-breaking investment are expected to keep RBL Bank’s shares in sharp focus in Monday’s trading.

RBL shares closed Friday’s session at Rs 300, down 2.3% from its last closing price on the NSE. RBL shares have been on a strong run, up 90% this year.

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