The Emirates NBD Bank has received regulatory approvals from banking authorities in the UAE and India to acquire a majority stake in RBL Bank Limited, removing a key hurdle in finalizing the deal and facilitating the bank’s expansion into one of the world’s fastest-growing major economies.
In response to an inquiry from Bloomberg, Emirates NBD stated: “We are actively engaging with the relevant authorities regarding the remaining approvals, which are proceeding through the usual channels, and we anticipate securing them in a timely manner to complete the transaction.” The deal has already received the nod from India’s competition commission.
Last year, Emirates NBD announced plans to invest up to $3.05 billion in the Indian private bank for an approximately 60% stake.
This acquisition will enable RBL Bank to enhance its corporate lending capabilities, accelerate retail loan growth, and leverage digital technology to enter Middle Eastern markets.
Additionally, it will provide Emirates NBD with a foothold in one of the most competitive banking markets in Asia, as part of a series of transactions in this sector.
This approval underscores India’s openness to foreign investments in its banking assets, even as regulators continue to impose stringent oversight on ownership structures and voting rights.
Last month, non-banking financial companies, Saman Capital Limited and Shriram Finance Limited, received clearance for their deals with Abu Dhabi’s International Holding Company and Japan’s Mitsubishi UFJ Financial Group.