RBL Bank shares in focus after lender's request to cap foreign shareholding at 24% rejected

Shares of RBL Bank will be in focus on Thursday, January 1, after the lender disclosed that its application seeking a temporary cap on foreign shareholding has not been approved by the authorities.

RBL Bank had formally approached the Reserve Bank of India and the Government of India to impose a temporary ceiling on foreign ownership at 24% of its total equity instruments on a fully diluted basis.

However, the request has not been acceded to under the prevailing regulatory framework.

The bank had sought the cap primarily to manage foreign investment inflows in the context of its proposed transaction with Emirates NBD. RBL Bank clarified that the move was intended as a precautionary measure and not due to any immediate breach of foreign shareholding limits.

Based on the current shareholding structure, Emirates NBD continues to have sufficient foreign shareholding headroom. This means the lender can still potentially acquire a stake of at least 51% in RBL Bank, subject to meeting all regulatory requirements and other conditions.

The bank also said that the proposed transaction with Emirates NBD remains unaffected.

The deal continues to be contingent on receiving necessary regulatory approvals and the fulfilment of conditions precedent outlined in the investment agreement signed on October 18, 2025.

Shares of RBL Bank ended 2.08% higher on Wednesday at ₹316.15. The stock has rallied about 100% over the past one year.