West Asian bank Emirates NBD will buy a 60 per cent stake in Indian private lender RBL Bank, according to an exchange notification.
Emirates will invest ₹26,853 crore ($3.05 billion) in the private lender through a preferential issue of shares, the statement from RBL Bank said, underscoring continued foreign investor interest in India’s financial sector.
Under the agreement, RBL Bank will issue as many as 959 million new shares at ₹280 each, representing a 6.5 per cent discount to Friday’s close, the filings showed.
The deal is the largest by a West Asian bank in India and comes months after Japan’s Sumitomo Mitsui Banking Corporation’s move to buy up to 25 per cent of Yes
Bank.
Earlier this month, Abu Dhabi’s largest listed company, International Holding Co. PJSC, acquired a 43.5 per cent stake in shadow lender Sammaan Capital for nearly $1 billion.
Foreign investors are drawn to India’s financial services sector due to its robust growth, driven by digital adoption, government initiatives and a large under-banked
population.
RBL Bank said the deal is subject to regulatory approvals. The Reserve Bank of India has informally communicated its backing for the deal, Reuters has reported.