RBL Bank expects first tranche of money from Emirates NBD Bank in 5-8 months

Before first tranche of money, the bank will take the approvals from the shareholders at the annual general meeting, which is schedule to held on November 12.

Private lender RBL Bank is expecting the first tranche of money from the Emirates NBD to come in within the next 5-8 months, management said during a press conference on October 19.

"We expect first tranche of money to come in by 5-8 months," R Subramaniakumar, managing director and chief executive officer of the bank said during the press conference.

Before first tranche of money, the bank will take the approvals from the shareholders at the annual general meeting, which is schedule to held on November 12.

Following this, the bank will apply for the approval of merger to the Reserve Bank of India (RBI), Securities and Exchange Board of India (SEBI), Competition Commission of India (CCI) and for other required clearances.

Subramaniakumar said that after all the necessary approvals, there will be an open offer from the Emirates NBD and after 15 days from open offer, the preferential issue will happen.

Subramaniakumar added that with new capital, the bank will be multiplying its distribution centers, scale up the existing areas, other geographies opportunities and wealth management business will be explored differently that is now in the pilot stage at the bank.

The bank is aiming to join the top five banks league in the next three to five years.

RBL Bank on October 18 announced that Emirates NBD Bank will acquire a majority stake in the bank through a primary infusion of around $3 billion (approximately Rs 26,850 crore) , the largest-ever foreign direct investment and equity raise in the Indian banking sector.

The boards of RBL Bank and Emirates NBD, at their respective meetings held on Saturday, approved entering into definitive agreements for the transaction, the two institutions said in a joint statement. The investment, to be made via a preferential issue of up to 60 percent, is subject to regulatory approvals and customary closing conditions. Emirates NBD will also make a mandatory open offer to acquire up to 26 percent from public shareholders in line with SEBI's takeover regulations.

The deal also includes the amalgamation of Emirates NBD's India branches with RBL Bank, as per RBI guidelines, once the preferential issuance is completed.

Emirates NBD said the investment underscores its long-term commitment to India, reflecting the country's growing significance within the India-Middle East-Europe Economic Corridor (IMEC) and strengthening the broader economic partnership between India and the UAE.

Post acquisition of stake, the bank board will have 50:50 ratio on the board, Subramaniakumar said.