Reuters - India's RBL Bank
sees an opportunity to start a wealth management business after Emirates NBD
buys a 60% stake for $3 billion, Chief Executive R Subramaniakumar said on Sunday.
The Middle Eastern bank will invest 268.53 billion rupees ($3.05 billion) in the private lender through a preferential issue of shares in the deal announced on Saturday, the largest cross-border acquisition in the Indian financial sector.
The deal is the latest in
a series of cross-border deals in India this year as India seeks to attract foreign investment and strengthen the country's midsize banks. Months earlier Japan's Sumitomo Mitsui Banking Corp moved to
buy up to 25% of Yes Bank.
"We aspire to become a large bank post-investment from Emirates NBD," Subramaniakumar told a press conference.
He said RBL's management will remain through the transition period.
RBL Bank hopes to get the first installment of funding in five to seven months, said Jaydeep Iyer, the bank's chief strategy officer. He said the merger will be effective from April and RBL will be a listed subsidiary of Emirates NBD.
