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Informist, Sunday, Oct. 19, 2025

--RBL Bank: Plan to grow credit card, microfin book in next 2 quarters 
--RBL Bank: Emirates NBD Bank invest allows us to foray into wealth mgmt 
--RBL Bank: Aspire to be a 'large bank' in the next 3-5 years 
--RBL Bk: Hope to get first tranche of funds from Emirates NBD Bk in 5-8 mos 
--RBL Bank: Emirates NBD Bank invest to help channelise flows from West Asia 
--RBL Bk: Aim to make governance stronger post stake sale to Emirates NBD Bk 
--CONTEXT: Comments by RBL Bank's management at post-earnings press meet 
--RBL Bank: Invest from Emirates NBD Bank will allow to grow corporate book 
 

MUMBAI – RBL Bank hopes to get the first tranche of funds from its new investor Emirates NBD Bank in the next five to eight months, the bank's management said at a press conference here on Sunday. "I don't want to guess on timelines for regulatory approvals, but naturally, this is going to be a few months of it...so, the first tranche of money should come in by the end of the fiscal year...somewhere in the five to seven months, five to eight months period," Jaideep Iyer, head-strategy, said. 

The bank's board has approved selling 60% stake in the lender to Emirates NBD Bank for INR 268.50 billion. This will be the largest fund raise through preferential issue of shares by a listed company in India, the domestic lender said in an exchange filing Saturday. This will also be the first acquisition of majority interest in a profitable Indian bank by a foreign bank, it added. 

RBL Bank's board also gave its nod for amalgamation of Emirates NBD Bank's branches in India into RBL Bank, which is expected to be completed by the end of the current financial year. The infusion of capital in RBL Bank will strengthen its balance sheet, enhance tier-1 capital ratio, and provide long-term growth capital, the Mumbai-based bank said.

The bank plans to grow its corporate book from the funds recieved through the investment, the management of the bank said. It also aspires to be in the top five private banks of India and become a large bank in the next three-five years. Founded as Ratnakar Bank Ltd in 1943 in Maharashtra's Kolhapur, RBL had total touchpoints of 1,911 as of the end of September, of which 564 are bank branches and 1,347 are business correspondent branches.

The investment, which will channelise flows from West Asia for the bank, will also allow it to foray into wealth management. "There are opportunities for doing wealth management because when they come with their international expertise in wealth management, we are pouring into that area. We have already done some pilots on that path," R. Subramaniakumar, managing director and chief executive officer of the bank, said. 

In terms of business operations, the bank will have to strengthen givernance as it looks to expand its wholesale portfolio, the management said. It will also look to re-grow the credit card and microfinance book of the bank. For the quarter ended September, RBL Bank Saturday reported a 20% on-year fall in its net profit at INR 1.78 billion and a 1% decline in its total income at INR 44.40 billion. Friday, its shares closed 2.4% lower at INR 299.50 on the National Stock Exchange.  End

Reported by Kabir Sharma

Edited by Avishek Dutta

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