RBL Bank shares in focus as RBI approves stake acquisition in USFBL post-amalgamation

Shares of RBL Bank are expected to be in the spotlight on Thursday after the Reserve Bank of India (RBI) granted its approval for the bank to acquire an aggregate holding in Utkarsh Small Finance Bank Limited (USFBL).

The approval was provided via an RBI letter dated August 5, and is linked solely to the amalgamation of Utkarsh Coreinvest Ltd (UCL) with USFBL.

“We wish to inform you that the RBI vide its letter dated August 5, 2025, granted its approval to acquire aggregate holding in Utkarsh Small Finance Bank Limited (USFBL), solely on account of amalgamation of Utkarsh Coreinvest Limited (UCL) with USFBL,” said RBL Bank via its filing to the stock exchanges.


While RBL Bank does not directly hold any shares in USFBL, it owns 8.64% in UCL as of March 31, 2025.

Following the proposed amalgamation, this stake would translate into more than 5% holding in USFBL’s paid-up equity share capital, which triggered the need for regulatory approval under RBI norms.

“The Bank does not hold any shares in USFBL and there is no direct acquisition, however as the Bank holds 8.64% shares in UCL as on March 31, 2025, pursuant to Share exchange Ratio for amalgamation, the Bank’s shareholding in USFBL post completion of the amalgamation of UCL with USFB would exceed 5% of paid up Equity Share Capital of USFBL, hence the Bank had made an application to RBI in response to which the aforesaid approval is received,” the company had added.

In response, RBL Bank filed an application with the RBI, which has now been approved. The central bank's consent is conditional on full compliance with multiple regulatory frameworks.

Additionally, the RBI’s approval mandates that the aggregate holding of RBL Bank in USFBL must remain below 10% of the latter’s paid-up capital or voting rights at all times.

On Wednesday, the shares of RBL Bank closed 2% lower at Rs 260.05 on the BSE.

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