Emirates NBD Financial institution PJSC is poised to develop into the controlling shareholder of RBL Financial institution via a Rs 15,000 crore ($1.7 billion) funding that might 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, at present in superior levels of negotiation, includes a preferential allotment of fairness shares and warrants, adopted by an open supply to accumulate an extra 26% stake. Upon completion, Emirates NBD is anticipated 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 Immediately was unable to confirm the event independently.
The capital infusion, fully via major issuance, would considerably strengthen RBL Financial institution’s stability sheet after a pointy 46% year-on-year drop in internet revenue for Q1 FY26, pushed by falling curiosity earnings and rising bills.
The financial institution reported a standalone internet 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. Internet Curiosity Earnings fell 13% to Rs 1,481 crore, whereas Internet Curiosity Margin dropped to 4.50%. Asset high quality additionally deteriorated, with gross NPA rising to 2.78% from 2.6% and internet 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. Nevertheless, it stated legal responsibility development remained robust 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, primarily based 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 anticipated on or earlier than that date.
