Emirates NBD, a prominent banking group based in the United Arab Emirates, is reportedly planning a significant move into the Indian banking sector. The Dubai-based lender is looking to acquire approximately 60% stake in RBL Bank , an Indian private sector bank, through a substantial investment of around $3 billion.

Key Details of the Proposed Acquisition

Implications and Next Steps

This potential acquisition represents a major foreign investment in India's banking sector. If successful, it would give Emirates NBD a controlling interest in RBL Bank, potentially reshaping the competitive landscape of private banking in India.

The proposed deal structure involves a new share issue from RBL Bank's Indian unit, suggesting that the investment would inject fresh capital into the bank, potentially strengthening its financial position and supporting future growth initiatives.

Awaiting Official Announcement

According to the report, an official announcement regarding this proposed acquisition is expected soon. Stakeholders, including investors, regulators, and customers of both banks, will likely be keenly awaiting further details about the terms of the deal, regulatory approvals required, and the strategic vision for RBL Bank under Emirates NBD's majority ownership.

As this story develops, more information may become available about the potential synergies between the two banks, the impact on RBL Bank's management and operations, and the broader implications for cross-border banking between the UAE and India.

It's important to note that until an official announcement is made, this information should be treated as a developing story subject to confirmation and potential changes.

RBL Bank has reported robust growth in its provisional financial figures for the second quarter, with total deposits reaching Rs. 116,665 crore and gross advances surpassing the Rs. 1 lakh crore mark.

Deposit Growth and Composition

The bank's total deposits saw an 8% year-on-year (YoY) increase and a 3% quarter-on-quarter (QoQ) growth. Notably, deposits below Rs. 3 crore, which the bank considers as granular retail deposits, constituted approximately 51% of total deposits, highlighting RBL Bank's focus on building a stable deposit base.

Current Account Savings Account (CASA) deposits reached Rs. 37,169 crore, resulting in a CASA ratio of 31.9%. This represents a modest 3% YoY growth in CASA deposits, though there was a slight decline in the CASA ratio compared to the previous year's 33.6%.

Advances Growth

RBL Bank's gross advances crossed a significant milestone, reaching Rs. 102,350 crore, marking a strong 14% YoY and 6% QoQ growth. The bank maintained a balanced portfolio with a retail to wholesale advances mix of approximately 60:40.

Key highlights of the advances growth include:

• Retail advances: Grew by 11% YoY
• Wholesale advances: Increased by 20% YoY
• Commercial banking advances (within wholesale): Surged by 33% YoY
• Secured retail advances: Rose by 29% YoY
• Unsecured retail advances: Declined by 7% YoY

Liquidity Position

The bank maintained a healthy liquidity position, with the Liquidity Coverage Ratio averaging 127% for the quarter, ensuring a strong buffer against potential short-term liquidity disruptions.

Financial Performance Overview

RBL Bank's Executive Director, Rajeev Ahuja, signed off on these provisional figures, which are subject to approval by the Audit Committee of the Board of Directors, the Board of Directors, and audit by the statutory auditors of the Bank.

The bank's focus on growing granular retail deposits and its balanced approach to advance growth across various segments demonstrates its commitment to sustainable expansion and improved financial stability. As RBL Bank crosses the Rs. 1 lakh crore mark in gross advances, it positions itself for continued growth in the competitive banking sector.