Emirates NBD Invests $3 Billion in India’s RBL Bank, Acquiring Majority Stake

Emirates NBD, the UAE’s second-largest bank by assets, has announced plans to invest $3.05 billion in India’s RBL Bank, acquiring a 60% stake in the private-sector lender. 

The deal underscores the growing appetite of Gulf investors for India’s rapidly expanding financial sector, driven by digital transformation and strong economic fundamentals.

According to a stock exchange filing released on Saturday, RBL Bank will issue 959 million new shares at 280 rupees ($3.18) apiece, representing a 6.5% discount to Friday’s closing price. Upon completion, Emirates NBD will become the majority shareholder in the Mumbai-based bank, marking one of the largest foreign banking investments in India in recent years.

India’s financial services industry has drawn increasing attention from international investors, buoyed by a government push for financial inclusion, rapid digital adoption, and a young, tech-savvy population. Analysts view Emirates NBD’s move as a strategic step to tap into one of the world’s most dynamic retail banking markets.

“India’s banking sector offers a compelling growth story,” said a Dubai-based financial analyst. “With rising digital penetration and supportive regulation, this investment positions Emirates NBD to capture long-term value in South Asia’s largest economy.”

RBL Bank’s shares have surged around 90% year-to-date, far outpacing the 13% gain in India’s broader banking index, giving it a market capitalization of about $2.09 billion as of Friday. Emirates NBD’s own stock has also risen 25% in Dubai trading this year, reflecting investor optimism in its regional expansion strategy.

The proposed acquisition is subject to regulatory approvals, including clearance from the Reserve Bank of India (RBI). If approved, it would strengthen the UAE’s financial footprint in India, a market increasingly favored by Gulf investors seeking diversification and exposure to high-growth economies.

Earlier this month, Abu Dhabi’s International Holding Company (IHC) announced a $1 billion investment for a 43.5% stake in Saman Capital, another Indian financial firm, signaling a broader regional trend of capital flows into India’s financial ecosystem.

The Emirates NBD–RBL deal highlights deepening financial ties between the Gulf and India, underpinned by trade relations, remittances, and strategic cooperation. With this investment, Emirates NBD joins a growing list of Middle Eastern institutions seeking to anchor their presence in India’s banking landscape.

If approved, the transaction could reshape RBL Bank’s growth trajectory and position Emirates NBD as a major foreign player in India’s domestic banking market.