RBL Bank shares gain over 3% as Emirates NBD readies majority stake purchase. Check details

Shares of RBL Bank Ltd gained as much as 3.4% to their day’s high of Rs 300 on the NSE on Tuesday, October 14, as Emirates NDB Bank PJSC, the second-largest bank in the UAE entered into advanced negotiations with RBL Bank to finalise a Rs 15,000 crore ($1.7 billion) investment and emerge as the single largest and controlling shareholder at the Indian private lender, The Economic Times reported yesterday.The investment will be in the form of preferential allotment of equity shares and warrants, to be followed by an open offer for an additional 26%, the report added. The entire investment will be through primary infusion of capital to help recapitalise the bank. RBL’s current market capitalization is nearly Rs 18,000 crore. Upon completion of the process, Emirates NBD is expected to end up owning 51% of the expanded equity capital base.

The transaction will expand Emirates NBD’s footprint in Asia and help make a strong play for the high-growth India-West Asia remittance market.

Kolhapur-based RBL is 100% publicly owned with several domestic institutions and mutual funds holding small stakes.

Q1 performance snapshot

The private sector lender reported a standalone net profit of Rs 200.33 crore for the first quarter ended June 2025, a 46% year-on-year decline compared to a profit of Rs 371.52 crore in the corresponding quarter of last year, as weaker interest income and rising expenses weighed on its performance.

RBL Bank said its Net Interest Income (NII) fell 13% YoY to Rs 1,481 crore from Rs 1,700 crore a year ago, and declined 5% sequentially compared to Rs 1,563 crore in the March 2025 quarter. The bank’s net interest margin (NIM) for Q1 FY26 stood at 4.50%.

Operating profit declined 18% YoY to Rs 703 crore, with the bank attributing the contraction to a reduction in unsecured lending and the impact of the recent repo rate cut.

At about 9:50 am, shares of the company were trading at Rs 294, higher by 1.35% from the last close on the NSE. RBL Bank shares have rallied an impressive 87% on a year-to-date basis and are up over 60% in the last 1 month.

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