Fitch Ratings has announced that the acquisition of RBL Bank will not impact the credit rating of Emirates NBD. This assessment comes as part of Fitch's evaluation of the transaction's potential effects on Emirates NBD's financial standing.

Key Points

• Fitch Ratings has evaluated the impact of RBL Bank's acquisition on Emirates NBD's credit rating.
• The rating agency has determined that the transaction will not affect Emirates NBD's current rating status.
• This assessment suggests that the acquisition is not expected to significantly alter Emirates NBD's financial position or risk profile in Fitch's view.

While the acquisition of RBL Bank by Emirates NBD is a significant move in the banking sector, Fitch's statement indicates that it does not perceive this transaction as a risk to Emirates NBD's creditworthiness. This assessment may provide reassurance to investors and stakeholders about the strategic decision made by Emirates NBD.

Recent Corporate Activity

According to the latest LODR (Listing Obligations and Disclosure Requirements) data, RBL Bank Limited has published newspaper advertisements regarding an upcoming Extraordinary General Meeting (EGM). The bank has informed its shareholders about the completion of dispatch of the EGM Notice, along with related documents, via email.

This corporate activity by RBL Bank, while not directly related to the acquisition news, demonstrates the bank's ongoing compliance with regulatory requirements and engagement with its shareholders. As the acquisition process unfolds, both RBL Bank and Emirates NBD are likely to keep their respective stakeholders informed of any significant developments.

The market will continue to watch how this acquisition progresses and its potential long-term implications for both entities involved, despite Fitch's current assessment of no impact on Emirates NBD's credit rating.

RBL Bank has recently reported its quarterly results and announced a significant investment deal, marking important developments for the bank.

Quarterly Financial Performance

RBL Bank's recent financial results show mixed performance:

• Net interest income met expectations
• Net interest margin (NIM) increased slightly to 4.51% from 4.50%
• Profit after tax declined 20% year-on-year due to higher provisioning
• Operating expenses were moderated

NIM Growth Projections

Despite the slight increase in NIM, RBL Bank has set ambitious targets for future growth:

Credit Card Portfolio Outlook

The bank has provided insights into its credit card business:

• Credit card slippages are expected to remain elevated for the next 1-2 quarters
• Stabilization in this segment is anticipated after this period

Major Investment from Emirates NBD

In a significant development, Emirates NBD will acquire a substantial stake in RBL Bank:

• Emirates NBD to acquire a 60% stake through a preferential equity issue
• The deal is valued at Rs 26,853.00 crore (approximately $3.00 billion)
• 96 crore new shares to be issued at Rs 280.00 per share
• This represents the largest foreign direct investment in India's financial services sector
• It's also the biggest equity fundraise by an Indian bank

Additional Details of the Deal

• Emirates NBD will make a mandatory open offer for an additional 26% stake at the same price
• The capital infusion is expected to triple RBL Bank's net worth from over Rs 15,000.00 crore to about Rs 42,000.00 crore
• Both boards have approved the amalgamation of Emirates NBD's India branches with RBL Bank, subject to RBI approval

Market Response

RBL Bank's shares closed at Rs 300.00, down 2.30% following the announcement. However, the stock has shown strong performance year-to-date, up 90%.

Recent Financial Disclosures

RBL Bank has recently published its unaudited financial results:

• Results cover the quarter and half year ended September 30
• The Board of Directors approved these results on October 18
• An earnings call with analysts and investors was held on October 19
• Audio recordings and transcripts of the earnings call are being made available on the bank's website

These developments, particularly the major investment from Emirates NBD, signal a significant transformation for RBL Bank. The substantial capital infusion is likely to strengthen the bank's position in the market and support its growth strategies. Investors and analysts will be closely monitoring how these changes impact the bank's performance and market standing in the coming quarters.