Dubai’s Emirates NBD Bank PJSC has agreed to buy 60% stake in RBL Bank Ltd., in what is seen as the biggest foreign investment in India’s financial services sector.
The middle-eastern bank will invest ₹26,853 crore—about $3 billion—in the the private lender via a preferential issue of shares, according to an exchange filing in Mumbai on Saturday. The deal is subject to regulatory approvals. The Reserve Bank of India has informally communicated its backing for the deal, Reuters has previously reported.
The RBL-Emirates NBD deal comes months after Japan’s Sumitomo Mitsui Banking Corp.’s bought up to 25% stake in Yes Bank Ltd.
On Friday, RBL Bank shares fell 2.27% to ₹299.50 apiece on the BSE even as the benchmark Sensex ended the day 0.58% higher at 83,952.19 points.