Bengaluru: Shares of India’s RBL Bank jumped as much as 5.1% on Monday following Dubai-based Emirates NBD’s announcement to acquire a 60% stake in the lender for $3 billion, marking one of the largest cross-border investments in India’s banking sector. The acquisition, executed via a preferential share issue at ₹280 per share a 6.5% discount to the stock’s previous close also includes a merger with Emirates NBD’s existing India operations.
Analysts hailed the deal as a “landmark transaction” for the Indian financial sector. CLSA noted that the investment would bring long-term benefits for RBL Bank, while Citi analysts described it as the start of a “new chapter” for the institution, providing substantial capital to support medium- and long-term growth initiatives. The deal is expected to trigger an open offer for additional shares, further consolidating the partnership between the two banks.
RBL Bank has been one of the top-performing mid-sized banks this year, with its stock climbing 94.3% year-to-date, compared with a 15% rise in India’s private banks index. Since reports of the Emirates NBD deal emerged last week, RBL shares have already gained 6.5%. The significant capital infusion from a well-established international bank is expected to enhance investor confidence and operational stability for RBL, according to market observers.
The acquisition underscores growing foreign investor interest in India’s banking sector, especially mid-sized banks with strong growth potential. By merging with Emirates NBD’s Indian operations, RBL Bank is poised to strengthen its market presence and expand its customer base, reinforcing India’s position as an attractive hub for international financial investment.