Private sector RBL Bank Ltd’s Employees Union has protested the takeover of the bank by UAE’s public sector lender, Emirates NBD for $3 billion and said this was an onslaught by international finance capital.

“In recent years, we have witnessed a concerning trend of increasing foreign control over Indian banks. It began with Laxmi Vilas Bank, acquired by Singapore-based DBS Group. This was followed by the acquisition of Catholic Syrian Bank by the Canadian firm Fairfax. More recently, Yes Bank is seeing a growing stake being taken over by Japan’s Sumitomo Mitsui Banking Corporation (SMBC), and now RBL Bank is to be acquired by UAE’s public sector lender, Emirates NBD, said Devidas Tuljapurkar, Chairman, RBL Bank Employees Union. 

“This growing foreign presence in Indian banking is nothing short of an onslaught by international finance capital. What makes this development particularly troubling is the irony that it is unfolding under a government that often champions the cause of Atmanirbhar Bharat (self-reliant India) and Swadeshi values. Despite its rhetoric, the government appears to be facilitating this steady encroachment,” he said.

Stating that banking is not just another industry—it is the very backbone of a nation’s economic infrastructure, he said allowing critical banking institutions to fall into the hands of foreign entities poses a significant risk to India’s financial sovereignty. 

“Such a move could severely undermine the country’s ability to independently manage its economic policy, especially in times of global uncertainty,” he emphasised.

“India’s independence is not merely a political concept; it must also extend to economic and financial domains. Preserving the integrity and autonomy of our banking sector is essential to defending that independence. It is imperative that we reconsider the direction in which we are headed before it becomes too late to reverse course,” he stressed. 

On Saturday the Board of Directors of Emirates NBD Bank and RBL Bank Ltd at their respective meetings approved entering into definitive agreements for ENBD to acquire controlling stake in RBL Bank through a primary infusion of ₹26,850 crore ($3 billion).

This makes the deal the largest ever foreign direct investment in the Indian financial services sector.

The proposed investment will be made via a preferential issue of up to 60%.

As part of this transaction, ENBD will also make a mandatory open offer for the purchase of up to 26% stake from the public shareholders of RBL Bank, as per SEBI’s Takeover Regulations.

The Board of Directors of ENBD and RBL Bank also approved the amalgamation of the India branches of ENBD with and into RBL Bank as required by RBI guidelines. 

This amalgamation is expected to be completed after the execution of the preferential issuance into RBL Bank.

The infusion will significantly strengthen RBL Bank’s balance sheet, enhance its Tier-1 capital ratio, and provide long-term growth capital, further enabling the Bank to deepen its deposit franchise and expand its footprint through calibrated branch network expansion, RBL Bank said in a statement.

Shayne Nelson, Group CEO of Emirates NBD said “Our investment in RBL Bank is a testament to our confidence in India’s vibrant and expanding economy. This strategic alignment brings together RBL Bank’s growing domestic franchise with Emirates NBD’s regional reach and financial expertise, creating a unique platform for growth and innovation.”

“An enhanced presence in India for ENBD, through a well-established business like RBL Bank, would further complement ENBD’s service to customers operating throughout the MENATSA region. We envisage to support Indian businesses, trade, projects, and other opportunities throughout the region leveraging our network,” he said.

RBL Bank Chairman Chandan Sinha said “This partnership marks a defining moment in RBL Bank’s journey of transformation. The entry of Emirates NBD as our strategic shareholder reflects the global confidence in India’s banking sector and RBL Bank’s potential within it. Together, we are poised to strengthen our capabilities, deepen our customer franchise, and build a future-ready institution anchored in trust, governance, and growth”

R. Subramaniakumar, Managing Director &CEO of RBL Bank said “This partnership secures a robust and globally respected anchor shareholder, providing a strong capital base for our future. We are excited about the synergies this alliance will create and are confident that our combined strengths will deliver superior value to all the stakeholders of the Bank.”

Published – October 19, 2025 02:30 am IST