RBL Bank on October 14 denied a report by the Economic Times which stated that Emirates NBD Bank is in advanced talks to acquire a majority stake in the private lender through a Rs 15,000 crore investment. The shares of the Indian bank erased most of its early gains to close around 1 percent higher at Rs 292.40 apiece.
The Economic Times cited people familiar with the development as stating that UAE's second largest bank is aiming to emerge as the single largest and controlling shareholder at the Indian private lender through a preferential allotment of equity shares.
What RBL Bank said:
Responding to the ET report, RBL Bank said, "The Bank is on a growth trajectory and routinely explores opportunities which are aimed at enhancing shareholder value. However, such discussions do not warrant a disclosure under Regulation 30 of the Listing Regulations, at this stage. Further, the contents of the aforesaid article are incorrect."
It added that there is no impact of this article on the bank.
Earlier on October 13, Moneycontrol was the first to report that Emirates NDB was in advanced discussions to pick up a majority stake in RBL Bank.
"Both parties have been in talks for the past few months and Emirates NBD is keen on picking up more than 51 percent stake in RBL Bank. They feel it's a good asset and are pursuing the deal for commercial reasons," said one of the persons quoted above.
The source however noted that the terms of the potential deal have not been finalized yet and the ongoing talks may or may not necessarily fructify into an eventual transaction.
Notably, public shareholders own 100 percent of RBL Bank's shares, which does not have any entity in the promoter category. At the end of day's trade on October 13, the market cap of the lender stood at Rs 17.786.79 crore ($2.01 bn). At these levels, a 51 percent stake in the firm would be worth around Rs 9,071 crore ($1.02 bn)
According to a second person, "Work is going on and the preferential issue route is likely to be used for this proposed transaction. Emirates NBD is bullish on the India market."
RBL Bank board meeting intimation:
According to a recent disclosure, a meeting of the Board of Directors of RBL Bank is scheduled to be held on October 18, 2025 to, "inter-alia consider and approve the unaudited standalone and consolidated financial results of the Bank for the quarter and half year ended September 30, 2025, subject to a limited review by the Joint Statutory Auditors of the Bank."
Notably, Emirates NBD has also been linked earlier with the divestment process of state-owned IDBI Bank. It is immediately unclear if the Gulf major can pursue both Indian assets.
The shares of the company had gained 3 percent during the day as the report boosted investor sentiment. However, the stock erased most of the gains after the bank issued the clarification.
Also read: Prashant Jain sees upward market breakout after 15-month time correction
Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
