RBL Bank Limited has informed the Exchange that Emirates NBD Bank (P.J.S.C) has received the approval of RBI to acquire an aggregate of upto 74% of paid up share capital of the Bank.
RBLBANK · price
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On the reaction day the stock moved 4.0 pts more than Nifty Smallcap 250 and 3.6 pts more than its Private Sector Bank peers, over the same two closes: a difference in percentage points, not a measure of what the filing did.
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Emirates NBD Bank (P.J.S.C) has received RBI approval to acquire up to 74% of RBL Bank's paid-up share capital. Under the approval, ENBD must acquire and maintain at least 51% stake and will be classified as the promoter of RBL Bank. The bank will be classified as a foreign bank in subsidiary mode. However, ENBD's voting rights are capped at 26% under section 12(2) of the Banking Regulation Act, 1949. The RBI approval is valid for one year but remains subject to Government of India approval for investment beyond 49% and other regulatory conditions.
This marks a major change in RBL Bank's ownership structure as ENBD will become the promoter with majority control. The transaction is positive for the bank's capital position and stability, though shareholders should note the 26% voting rights cap limits ENBD's actual control.