RBL Bank announces capital infusion by Emirates NBD

RBL Bank has announced a transformational transaction with Emirates NBD PJSC (ENBD), involving a primary capital infusion of approximately $3 billion. This investment will grant ENBD up to a 60% stake in RBL Bank through a preferential issue, triggering a mandatory open offer for an additional 26% of the expanded capital at a price of INR 280 per share. The transaction will also include the amalgamation of ENBD's existing Indian branches with RBL Bank, with ENBD receiving additional shares in RBL Bank at the same preferential issue price.

The capital infusion is expected to triple RBL Bank's net worth from over INR 15,000 crore to more than INR 42,000 crore, significantly strengthening its capital position. This will enable accelerated expansion in branches, digital platforms, and customer engagement, while also creating capacity for investment in brand, technology, and product innovation. The partnership is also anticipated to improve RBL Bank's credit rating, lower its cost of funds, and strengthen its balance sheet.

The transaction is subject to shareholder and various regulatory approvals. Upon completion, ENBD will be designated as the promoter of RBL Bank and will have the right to nominate directors to the board.