Emirates NBD, a leading bank based in Dubai, has announced a landmark $3 billion agreement to acquire a 60% stake in India's RBL Bank, subject to regulatory approval. This transaction represents the largest foreign direct investment in the Indian banking sector to date. The acquisition will be executed through a preferential share issue, significantly boosting RBL Bank's Tier-1 capital ratio to 40% and facilitating its operational expansion.
Shayne Nelson, Group CEO of Emirates NBD, emphasized that the investment underscores the bank's confidence in India's burgeoning economy and aligns with its strategy to enhance regional services. RBL Bank's CEO, R Subramaniakumar, highlighted that the partnership will provide a robust capital foundation for the bank's future growth. This deal marks the first instance of a profitable Indian bank being majority-owned by a foreign entity, indicating a growing international interest in India's financial sector.
Emirates NBD to Acquire 60% Stake in RBL Bank for $3 Billion
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