For the quarter ended September 2025 (Q2FY26), RBL Bank’s net interest income (NII) was broadly in line with expectations, supported by a marginal uptick in its net interest margin (NIM), which rose by 1 basis point sequentially to 4.51% from 4.50% in the previous quarter. Growth in pre-provision operating profit (PPOP) was aided by moderation in operating expenses, but higher provisioning impacted profitability, leading to a 20% year-on-year decline in profit after tax (PAT).
Separately, RBL Bank announced a strategic investment by Emirates NBD, which will acquire a 60% stake in the lender through a preferential equity issue worth Rs 26,853 crore (around $3 billion) at Rs 280 per share. The bank’s board has approved the issue and allotment of 96 crore new shares to the Dubai-based banking group.
The transaction marks several milestones — it is the largest-ever foreign direct investment (FDI) in India’s financial services sector, the biggest equity fundraise by an Indian bank, the largest preferential issue by a listed company, and the first instance of a foreign bank acquiring a majority stake in a profitable Indian private sector lender.
As per regulatory requirements, Emirates NBD will also make a mandatory open offer to acquire up to an additional 26% stake in RBL Bank at the same price. Both boards have also approved the amalgamation of ENBD’s India branches with and into RBL Bank, subject to the Reserve Bank of India’s approval. Once completed, Emirates NBD will become the promoter of RBL Bank and will have the right to nominate directors to its board.
The capital infusion is expected to triple RBL Bank’s net worth from over Rs 15,000 crore to about Rs 42,000 crore, strengthening its capital ratios, improving its credit ratings, reducing cost of funds, and supporting branch expansion and digital initiatives.Emirates NBD said the investment underscores its confidence in India’s fast-growing financial sector and reinforces India’s strategic role within the India-Middle East-Europe Economic Corridor (IMEC). The partnership combines ENBD’s strong capital base and international reach with RBL Bank’s established domestic presence, creating a platform for future growth and innovation.RBL Bank Chairman Chandan Sinha said the deal marks a defining moment in the bank’s transformation journey, while Emirates NBD Group CEO Shayne Nelson said the investment reflects their confidence in India’s expanding economy and will help support Indian businesses and trade across the MENATSA region.
Together, the steady quarterly performance and the record-breaking investment are expected to keep RBL Bank shares in sharp focus in Monday’s trade.
RBL shares ended the Friday session at Rs 300, lower by 2.3% from the last close on the NSE. RBL shares have seen a strong run up, up 90% on a year-to-date basis.
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