RBL Bank denies reports of takeover talks with UAE's Emirates NBD

Mumbai, Oct 14 (IANS) RBL Bank on Tuesday dismissed media reports claiming that Emirates NBD Bank PJSC, the second-largest lender in the United Arab Emirates (UAE), is planning to acquire a controlling stake in the Indian private sector bank.

In a clarification to the stock exchanges, RBL Bank said the reports were “incorrect” and that no such transaction is under discussion.

“The bank is on a growth trajectory and routinely explores opportunities that are aimed at enhancing shareholder value. However, such discussions do not warrant a disclosure under Regulation 30 of the Listing Regulations at this stage,” the bank said.

Reports earlier suggested that Emirates NBD was in advanced talks to invest Rs 15,000 crore in RBL Bank, which would make it the single-largest and controlling shareholder. However, RBL Bank categorically denied these claims, stating that the contents of the article were “incorrect.”

Following the initial reports, shares of RBL Bank jumped as much as 3.3 per cent to Rs 299.60 during the intra-day -- their highest level since January 2024 -- before closing 0.83 per cent higher at Rs 292.40 on Tuesday.

Under India’s foreign investment rules, overseas investors can hold up to 74 per cent in private sector banks. However, a single foreign institution’s shareholding is capped at 15 per cent, unless the Reserve Bank of India (RBI) grants special approval.

In recent years, foreign interest in Indian banks has grown. For instance, Japan’s Sumitomo Mitsui Banking Corporation (SMBC) acquired a 20 per cent stake in Yes Bank from State Bank of India and other private lenders and later increased its holding to 24.22 per cent.

RBL Bank said it remains focused on its expansion plans and shareholder value creation, while reiterating that there are no talks with Emirates NBD regarding a stake purchase.

"We adhere to the highest standards of governance and disclosures and will keep the stock exchanges informed of any material events as required under Regulation 30 of the Listing Regulations," it added in its filing.

--IANS

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