RBL Bank CEO explains rationale behind Emirates NBD deal, outlines growth goals

RBL Bank’s top management on October 19 outlined the broad contours of its proposed deal with Emirates NBD, calling it a strategic partnership aimed at expanding digital capabilities and strengthening its corporate lending base.

R Subramaniakumar, Managing Director and CEO of RBL Bank, said India offers “a big growth opportunity and is well-known globally,” making it an attractive market for the Middle East-based lender. Addressing a press conference, he added that governance and compliance culture remain key focus areas for both partners.

“Emirates NBD looks at RBL Bank as a niche, agile bank with a national footprint,” Subramaniakumar said, adding that the tie-up will also help establish a digital network hub in West Asia and enable RBL Bank to participate in larger corporate lending opportunities.

As part of the agreement, 50% of RBL Bank’s board will comprise independent directors, with the remaining half being executive directors.

Rajeev Ahuja, Executive Director, said the transaction will be subject to all necessary regulatory and shareholder clearances.

Jaideep Iyer, Head of Strategy, noted that the deal will begin with a preferential issue followed by an open offer, with the effective date of the merger set for April 2026.

On October 18, RBL Bank had announced that Emirates NBD, one of the largest banking groups in the Middle East, will acquire up to a 60% stake in the private lender

. The investment will involve a capital infusion of up to ₹26,853 crore at ₹280 per share, making it one of the largest foreign investments in India’s banking sector.

Once the preferential issue is completed, Emirates NBD will become the promoter of RBL Bank. The board has also approved raising the bank’s authorised share capital from ₹1,000 crore to ₹1,800 crore to facilitate the new share issuance.

The transaction, which remains subject to approvals from the Reserve Bank of India, shareholders, and other regulators, will also adhere to the 24% cap on aggregate foreign ownership pending final clearances.

RBL Bank plans to seek shareholder approval at an Extraordinary General Meeting on November 12, with the effective date of the scheme set as April 1, 2026, once all conditions are met.

The investment, the bank said, will significantly strengthen its capital base, enhance lending capacity, and support its long-term growth plans.