ENBD secures a $3 billion RBL Bank deal, marking the United Arab Emirates’ largest foreign banking investment in India to date.
Dubai’s Emirates NBD Bank PJSC (ENBD), the second-largest bank in the United Arab Emirates (UAE), is about to make the largest foreign direct investment in India’s banking sector in history, with the acquisition of 74% of the paid-up shares of private sector bank RBL, and has received the Reserve Bank of India’s approval.
The approximately $3 billion deal includes an initial 60% stake secured via preferential issue in October 2025. The Competition Commission of India also cleared the deal in January 2026.
Despite this majority stake, ENBD’s voting power will be limited to 26% of RBL’s total voting rights, in compliance with India’s Banking Regulation Act of 1949. ENBD has to make a mandatory open offer to purchase up to 26% from RBL’s public shareholders at an offer price of $2.97 per share. RBL reported a 234% surge in quarterly net profit to $24.4 million for the March quarter.
RBL will be classified as a foreign bank subsidiary of ENBD and will have to amend its Articles of Association. ENBD is required to acquire and maintain a shareholding of at least 51% of the paid-up share capital of the RBL within the RBI’s one-year approval window, which took effect on April 1, 2026.
The RBI granted concessions, including an exemption from independent director quorum requirements and a waiver from the “single mode of presence” rule. This allows ENBD to operate its legacy Indian branches alongside RBL’s network for one year or until amalgamation.
Although the RBL acquisition represents a major victory, ENBD’s broader expansion in India has not been without its challenges. ENBD’s separate bid for IDBI Bank in February 2026 hit a roadblock. The government has recently called for revised bids after the initial offers fell below the set reserve price.
This pivot toward Indian markets is driven by the Iran-Israel war’s disruption of Gulf-based businesses and the potential of RBL’s 15.17 million customers and 603-branch network. Ultimately, ENBD aims to capitalize on India’s high-growth economy to cement its status as a cross-border powerhouse.
ENBD’s expansion mirrors soaring UAE-India trade, which recently eclipsed the $100 billion mark, surpassing expectations by five years early.
