New Delhi, May 15 (PTI) The Finance Ministry has granted approval to Dubai-based Emirates NBD Bank (P.J.S.C) for the acquisition of up to 74 per cent stake in RBL Bank, a development that paves the way for the inflow of about Rs 26,850 crore in the country.

Emirates NBD Bank has informed that it has received a letter from the Department of Financial Services dated May 14, 2026, approving its proposed acquisition in RBL Bank, a regulatory filing said on Friday.

The approval for investment in excess of 49 per cent and up to 74 per cent of the total paid-up equity share capital of RBL Bank was approved, RBL Bank said.

The approval came a day before Prime Minister Narendra Modi's official visit to the UAE.

This development marks a significant step towards the completion of the transaction, which was first announced on October 18, 2025, RBL Bank said in a statement.

The proposed investment, by way of primary infusion of approximately USD 3 billion (about 26,850 crore) represents one of the largest international investments in the Indian banking sector, and is expected to position RBL Bank strongly for its next phase of growth, it said.

The progression of the transaction reflects sustained engagement across stakeholders in India and the UAE, and underscores the continued strengthening of economic and financial linkages between the two countries, it said.

"For RBL Bank, this represents a pivotal inflection point in its growth journey. The proposed investment is expected to unlock new international opportunities, accelerate expansion across high-growth segments, and Bank's ability to serve a more global and diversified customer base, while reinforcing long-term investments in technology, risk management, and customer experience," it said.

RBL Bank Chairman Chandan Sinha said, "The approval reinforces confidence in our franchise and positions us to unlock new growth opportunities, expanding cross-border corridors and scaling of our key business segments while maintaining customer centricity and strong governance standards." The bank's MD and CEO R Subramaniakumar said this milestone marks a transformational step forward for RBL Bank.

"It strengthens our ability to accelerate growth, deepen our presence across priority segments, and unlock new opportunities both domestically and globally. As we move ahead, our focus is on building a strong, agile, future-ready institution that consistently delivers value to customers, partners, and stakeholders," Subramaniakumar added.

The proposed investment by Emirates NBD Bank in RBL Bank by way of a preferential issue of equity shares remains subject to completion of the customary conditions, it said.

Emirates NBD will subscribe to up to 959,045,636 fully paid equity shares of RBL Bank at Rs 280 per share through a preferential issue, representing approximately 60 per cent of RBL Bank's post-issue paid-up share capital.

NBD's final shareholding is expected to range between 51 per cent and 74 per cent of total paid-up share capital, subject to compliance with applicable foreign ownership limits and the conclusion of the mandatory open offer process.

The transaction further envisages the eventual amalgamation of Emirates NBD's India branch operations in Mumbai, Chennai, and Gurugram into RBL Bank, subject to receipt of further regulatory clearances.

Upon completion, Emirates NBD will be recognised as the promoter, with RBL Bank operating as a foreign bank subsidiary in accordance with the Reserve Bank of India's framework.

Last month, the Reserve Bank of India (RBI) accorded approval to Emirates NBD Bank to acquire up to 74 per cent stake in RBL Bank.

The approval was granted following Emirates NBD Bank, the second largest in the UAE, expressing its interest in October 2025 to acquire a majority 60 per cent stake in RBL Bank for Rs 26,853 crore.

As per the approval letter, Emirates NBD (ENBD) would acquire and maintain a shareholding of at least 51 per cent of the paid-up share capital of RBL Bank and the bank would be classified as a foreign bank in subsidiary mode, with the investor as its parent foreign bank.

Earlier in January, fair trade regulator CCI had approved Emirates NBD Bank's proposal to acquire a majority stake in private sector lender RBL Bank. PTI DP HVA

Foreign investment approval for Emirates NBD's majority stake in RBL Bank advances a banking acquisition subject to regulatory conditions. Foreign investment approval was granted for Emirates NBD Bank to acquire up to 74 per cent of the paid-up equity share capital of RBL Bank through a preferential issue, subject to customary conditions, applicable foreign ownership limits and the mandatory open offer process. The transaction contemplates Emirates NBD becoming the promoter and RBL Bank operating as a foreign bank subsidiary under the Reserve Bank of India framework, with the eventual amalgamation of Emirates NBD's India branch operations subject to further regulatory clearances.