RBI clears Emirates NBD’s stake acquisition in RBL Bank

Reserve Bank of India has approved UAE-based Emirates NBD to acquire up to a 74% stake in RBL Bank for around $3 billion, marking the largest foreign investment in an Indian bank.

Following the approval, RBL Bank will be treated as a foreign bank subsidiary, governed under norms applicable to wholly owned subsidiaries of foreign banks. However, the RBI has relaxed certain governance requirements, including the condition mandating at least half the board to comprise independent directors.

The bank has been directed to amend its Articles of Association to reflect the new ownership structure and obtain further regulatory approvals.

The transaction is expected to strengthen capital, enhance global integration, and support the bank’s long-term growth strategy.