Emirates NBD Financial institution PJSC is poised to turn out to be the controlling shareholder of RBL Financial institution by a Rs 15,000 crore ($1.7 billion) funding that will recapitalise the struggling Indian lender and provides the UAE-based financial institution a majority stake, as per a report by The Financial Occasions.
The deal, presently in superior phases of negotiation, includes a preferential allotment of fairness shares and warrants, adopted by an open provide to accumulate a further 26% stake. Upon completion, Emirates NBD is predicted to carry 51% of RBL Financial institution’s expanded fairness, the report added. The Reserve Financial institution of India has already granted in-principle approval for the change of management, as per the report.
Enterprise As we speak was unable to confirm the event independently.
The capital infusion, fully by major issuance, would considerably strengthen RBL Financial institution’s steadiness sheet after a pointy 46% year-on-year drop in web revenue for Q1 FY26, pushed by falling curiosity earnings and rising bills.
The financial institution reported a standalone web revenue of Rs 200.33 crore for the quarter ended June 2025, in comparison with Rs 371.52 crore in the identical interval final 12 months. Web Curiosity Revenue fell 13% to Rs 1,481 crore, whereas Web Curiosity Margin dropped to 4.50%. Asset high quality additionally deteriorated, with gross NPA rising to 2.78% from 2.6% and web NPA climbing to 0.45% from 0.29%.
RBL Financial institution acknowledged challenges in its bank card portfolio and reiterated plans to calibrate development in unsecured lending to stabilise asset high quality. Nonetheless, it stated legal responsibility development remained sturdy and constant.
The acquisition marks a strategic transfer by Emirates NBD to deepen its presence in Asia and capitalize on the India-Center East remittance hall. In accordance with RBI information, Indians in GCC nations account for half of the worldwide Indian migrant inhabitants. The UAE alone contributed half of the $38.7 billion India acquired in remittances from the Gulf in FY24, making it India’s second-largest supply of overseas remittances globally.
RBL Financial institution, based mostly in Kohlapur, is fully publicly owned, with no single dominant shareholder. Its board is scheduled to satisfy on October 18 to approve monetary outcomes for the September quarter, and a proper announcement of the Emirates NBD deal is predicted on or earlier than that date.
