RBL Bank plans to approach the Department for Promotion of Industry and Internal Trade (DPIIT) to raise its foreign direct investment (FDI) limit from the current 49 % to 74 %. This step is crucial for facilitating a major investment from Emirates NBD Bank, which intends to acquire a 60 % stake in RBL, marking one of the largest FDI deals ever in India’s banking sector.
Under the deal terms, Emirate NBD is set to invest approximately US$3 billion for the stake. As per regulations, foreign investment beyond 49 % in Indian private banks is subject to government approval, hence the need to raise the FDI ceiling.
RBL plans to hold an Extraordinary General Meeting (EGM) on 12 November to approve the transaction before submitting its application to DPIIT. Once the cap is raised and the deal cleared by regulators, RBL aims to use the capital infusion to expand its digital lending business, strengthen its payments ecosystem and deepen its micro-finance operations.
This development underscores India’s growing appeal as a destination for large-scale foreign investment in the banking sector and signals a potential shift in how global banks participate in India’s financial ecosystem. Would you like a shorter, web-ready summary version (~150 words) of this story?
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