RBL Bank Stock in Focus Following Update on Emirates Stake Acquisition

Synopsis: Shares of RBL Bank are in focus after the RBI and Government declined its request to cap foreign ownership at 24%. The bank said its investment deal with Emirates NBD is unaffected, easing concerns around the transaction.

The shares of this bank, which has its vast presence in Corporate Banking, Commercial Banking, Branch & Business Banking, Retail Assets, and Treasury & Financial Markets Operations, are in focus after a significant development was announced by the company related to Emirates NBD’s investment in it. In this article, we will dive more into the details of it.

With a market capitalisation of Rs 19,394 crore, the shares of RBL Bank Ltd. made a day low of Rs 310.90 per share, down 1.5 percent from its previous day’s closing price of Rs 315.65 per share. Over the past five years, the stock has delivered a poor return of 36 percent, underperforming NIFTY 50’s return of 87 percent.

RBL Bank, through a stock exchange filing, announced that the deal with Emirates NBD is not negatively impacted by the refusal to impose a cap on foreign shareholding. It added that the investor still has sufficient room to raise its stake to a minimum of 51 per cent stake, and the deal is going ahead as planned.

Previously, RBL Bank had notified the stock exchanges that the Reserve Bank of India and the Government have not approved its application for a temporary cap on foreign shareholding at 24 percent under the existing regulations to safeguard company’s interest, while this matters remains silent now with the acquisition moving ahead.

About the deal

A few months ago, RBL Bank revealed a significant investment deal with Emirates NBD, the largest bank in Dubai and the second-largest bank in the UAE. As per the agreement, Emirates NBD intends to purchase a controlling stake (approximately 60 percent) in RBL Bank via a preferential share issue, succeeded by an open offer. The overhaul is anticipated to take place within the next few months and is contingent on regulatory approvals. The value of the deal is $3 billion, which is Rs 26,850 crore.

This transaction matters as it delivers new money, worldwide banking know-how, and cutting-edge digital capabilities to RBL Bank. The bank aims to take these measures to expand its lending business, elevate digital services, and fortify its balance sheet. The arrival of Emirates NBD therefore signals a strong vote of confidence in India’s banking sector.

To customers and investors, RBL Bank will remain a going concern and be publicly traded. Thus, the joint venture might result in upgraded technology, enhanced financial health, and accelerated growth, thereby making the bank more competitive in the Indian market.

RBL Bank reported a Net Interest Income (NII) of Rs 1,551 crore in Q2 FY26, representing a 4 percent decline from Rs 1,615 crore in Q2 FY25. However, it recorded a slight growth of 5 percent from its previous quarter figure of Rs 1,481 crore.

Coming to its profitability front, RBL Bank reported a net profit of Rs 179 crore in Q2 FY26 as compared to Rs 223 crore in Q2 FY25, which is a decline of 20 percent from Rs 223 crore. Additionally, it recorded a decline of 11 percent from its previous quarter profit of Rs 200 crore.

RBL​‍​‌‍​‍‌​‍​‌‍​‍‌ Bank is an Indian commercial bank that provides a wide range of daily banking services to individuals and businesses. Some of the products and services it offers include savings accounts, current accounts, fixed deposits, and different types of loans (home, personal, business, vehicle, and small rural loans). In addition, it offers insurance, mutual funds, and other investment products, credit cards, and digital banking.

For businesses, the bank provides funds through corporate loans, trade finance, cash management, and foreign exchange services. With its extensive network of branches, ATMs, and business correspondents, RBL Bank is the one-stop solution for retail customers, companies, NRIs and rural borrowers all over ​‍​‌‍​‍‌​‍​‌‍​‍‌India.

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.

The post RBL Bank Stock in Focus Following Update on Emirates Stake Acquisition appeared first on Trade Brains.