RBL Bank Limited has issued a comprehensive clarification to stock exchanges regarding recent media reports about a criminal investigation involving alleged misuse of accounts at one of its branches in Telangana. The clarification, dated April 1, 2026, addresses concerns raised about the bank's involvement in the ongoing investigation.

Investigation Details and Legal Proceedings

The bank confirmed its awareness of the criminal investigation being conducted by the Karimnagar-III Town Police and Telangana Cyber Security Bureau. The matter involves multiple FIRs registered against various parties.

The investigation centers on the alleged misuse of certain current accounts maintained at the bank's Kisan Nagar branch in Karimnagar. According to the bank's statement, these accounts are reported to have been used by certain individuals for unlawful activities.

Employee Involvement and Current Status

During the preliminary investigation, two employees from the affected branch have been taken into custody by authorities. However, both employees have subsequently been granted bail by the Hon'ble Court. The bank emphasized that the matter remains sub judice and is currently under active investigation by police authorities.

The bank stated it has no knowledge of, nor has it authorized or sanctioned, any alleged wrongful acts by any individual. Furthermore, the bank clarified it is not aware of any misuse of funds being remitted from its customers' accounts.

Regulatory Compliance and Disclosure Requirements

RBL Bank addressed concerns about regulatory disclosure requirements under SEBI regulations. The bank maintained that pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, such events do not warrant mandatory disclosure.

Risk Management and Internal Controls

The bank emphasized its robust internal control mechanisms and policies. RBL Bank stated it maintains comprehensive policies and procedures governing Know Your Customer (KYC) compliance, account opening processes, and employee conduct standards. The bank expects strict adherence to these policies at all times across all its operations.

Expected Impact on Operations

RBL Bank does not anticipate any material impact on its operations or financial position arising from this investigation. The bank clarified that the matter does not pertain to the bank's financial affairs directly. The institution reiterated its zero-tolerance approach towards any form of misconduct and commitment to maintaining the highest standards of governance, regulatory compliance, and customer protection.

The bank assured stakeholders that it will continue to keep stock exchanges informed of any material events as required under Regulation 30 of the Listing Regulations, maintaining its commitment to transparency and regulatory compliance.

RBL Bank has received a significant regulatory milestone for the proposed acquisition by Emirates NBD Bank, with the Central Bank of United Arab Emirates granting its approval for the transaction. The development was communicated to stock exchanges on March 25, 2026, marking progress in the cross-border banking deal.

UAE Central Bank Grants Approval

Emirates NBD Bank (P.J.S.C) informed RBL Bank on March 25, 2026 that it has received a letter from the Central Bank of United Arab Emirates dated March 24, 2026. The letter approves the investor's proposed acquisition of a majority stake in RBL Bank and the proposed amalgamation of Emirates NBD's existing operations in India into the Indian lender.

Regulatory Compliance and Next Steps

The approval from the UAE Central Bank represents a crucial step in the acquisition process, though the transaction remains subject to receipt of all necessary regulatory approvals from other relevant authorities. This indicates that additional clearances from Indian regulatory bodies and other jurisdictions may still be required before the deal can be completed.

RBL Bank has ensured compliance with disclosure requirements under Regulation 46(2) of SEBI Listing Regulations by hosting the information on the bank's website at www.rbl.bank.in . The current disclosure follows the bank's earlier stock exchange announcement regarding this transaction dated October 18, 2025.

Transaction Background

The proposed deal involves Emirates NBD Bank acquiring a majority stake in RBL Bank while simultaneously amalgamating its existing Indian operations into the Indian lender. This structure would consolidate Emirates NBD's presence in the Indian banking market under the RBL Bank platform, potentially creating synergies and expanding the combined entity's market reach.

The transaction represents a significant development in India's banking sector, involving one of the UAE's largest banking groups and an established Indian private sector bank. The approval from the UAE Central Bank demonstrates the transaction's alignment with the Emirates' regulatory framework and strategic banking policies.