After Yes Bank, this giant bank is now preparing to sell a large stake, a deal with a Dubai-based bank for Rs 26,850 crore.:

News Topical, Digital Desk : RBL Bank on Saturday announced that Emirates NBD Bank will acquire a majority stake in the bank through a primary investment of approximately $3 billion (about Rs 26,850 crore), the largest foreign direct investment and equity raising in the Indian banking sector to date.

According to media reports, the boards of directors of RBL Bank and Emirates NBD approved the signing of the final agreement for the transaction at their respective meetings on Saturday. This investment, made through a preferential issuance of up to 60%, is subject to regulatory approvals and customary closing conditions.

Emirates NBD will also make a mandatory open offer to acquire up to 26% stake from public shareholders in line with SEBI takeover regulations.

The deal also includes the merger of Emirates NBD's India branches with RBL Bank, once the preferential issue is completed, in accordance with RBI guidelines.

Emirates NBD said the investment reflects the country's growing importance in the India-Middle East-Europe Economic Corridor (IMEC) and strengthens the comprehensive economic partnership between India and the UAE.

Shayan Nelson, Group CEO, Emirates NBD, said, "Our investment in RBL Bank is a testament to our belief in India's vibrant and expanding economy. This strategic alliance combines RBL Bank's growing domestic franchise with Emirates NBD's regional reach and financial expertise, creating a unique platform for growth and innovation."

He added, "ENBD's increased presence in India through a well-established business like RBL Bank will further enhance ENBD's services to customers operating in the Menatsa region. We plan to leverage our network to support Indian businesses, trade, projects and other opportunities across the region."

Chandan Sinha, Chairman, RBL Bank, said, "This partnership marks a pivotal moment in RBL Bank's transformation journey. Emirates NBD's entry as our strategic shareholder reflects global confidence in India's banking sector and RBL Bank's potential within it. Together, we are poised to strengthen our capabilities, further strengthen our customer franchise, and build a future-ready institution built on trust, governance, and growth."