RBL Bank shares will be in focus following the lender's disclosure that its application seeking a temporary cap on foreign shareholding has not been approved by authorities. The bank had formally approached both the Reserve Bank of India and the Government of India with this request, but it was not acceded to under the prevailing regulatory framework.

Foreign Shareholding Cap Request Details

The bank had sought to impose a temporary ceiling on foreign ownership at 24% of its total equity instruments on a fully diluted basis. This request was primarily aimed at managing foreign investment inflows in the context of its proposed transaction with Emirates NBD.

RBL Bank clarified that this move was intended as a precautionary measure and not due to any immediate breach of foreign shareholding limits.

Impact on Emirates NBD Transaction

Despite the rejection of the shareholding cap request, the proposed transaction with Emirates NBD remains unaffected. Based on the current shareholding structure, Emirates NBD continues to have sufficient foreign shareholding headroom, meaning the lender can still potentially acquire a stake of at least 51% in RBL Bank.

The deal continues to be contingent on receiving necessary regulatory approvals and the fulfillment of conditions precedent outlined in the investment agreement signed on October 18, 2025.

Stock Performance

RBL Bank shares demonstrated strong market performance, ending 2.08% higher on Wednesday at ₹316.15. The stock has delivered impressive returns, rallying approximately 100% over the past one year, reflecting investor confidence in the bank's prospects and the potential Emirates NBD transaction.

RBL Bank has submitted applications to regulatory authorities seeking temporary restrictions on foreign shareholding as it progresses with a significant investment proposal from Emirates NBD Bank. The private sector lender announced on December 31 that it had approached both the Reserve Bank of India and the Government of India for approval.

Regulatory Applications for Foreign Shareholding Cap

The bank has requested permission to temporarily cap foreign shareholding at 24% of the total equity instruments on a fully diluted basis. However, this request has not been acceded to under the existing rules and regulations. The application directly relates to the proposed investment by Emirates NBD Bank (P.J.S.C) through a preferential issue of equity shares.

Investment Transaction Progress

Subject to receipt of requisite regulatory approvals and satisfaction of other conditions precedent, both parties will proceed with completion of the proposed transaction as per the investment agreement dated October 18, 2025. RBL Bank emphasized that based on the latest shareholding pattern, Emirates NBD has sufficient foreign shareholding headroom to hold a minimum of 51% stake in the bank.

Both RBL Bank and Emirates NBD are actively engaged in fulfilling the conditions precedent to the proposed transaction. The bank has committed to keeping stock exchanges informed of any material developments regarding this investment.

Executive Leadership Changes

In a separate development, RBL Bank announced that Executive Director Rajeev Ahuja will retire from the bank upon completion of his present term, which ends on February 20, 2026. Accordingly, Ahuja will cease to be the executive director and a key managerial personnel of RBL Bank with effect from February 21, 2026.

The board has accepted Ahuja's request for retirement, which coincides with the end of the term approved earlier by the Reserve Bank of India. The board placed on record its appreciation for Ahuja's contribution to the bank, noting his pivotal role in the institution's transformation from Ratnakar Bank to RBL Bank. He has been associated with the bank since 2010 and has been a core member of the senior management team for over a decade.

Market Performance

Shares of RBL Bank ended at ₹316.15, up by ₹6.45, or 2.08%, on the BSE on December 31. The stock performance reflects investor interest amid these significant corporate developments involving both the Emirates NBD investment proposal and leadership transition.