RBL Bank announced key updates on its credit ratings and the proposed acquisition of a 60% stake by Emirates NBD (ENBD). ICRA has reaffirmed the short-term rating at [ICRA]A1+ and continues to monitor the long-term rating on Watch with Positive Implications, pending regulatory approvals for the ENBD transaction. The proposed equity infusion by ENBD is expected to improve the bank’s capital position and profitability.
Credit Rating Reaffirmation
ICRA has reaffirmed RBL Bank’s short-term rating of [ICRA]A1+ for its certificates of deposit program. The rating agency also enhanced the amount for the certificates of deposit program. Concurrently, the long-term rating continues to be under ‘Watch with Positive Implications’.
ENBD Stake Acquisition
Emirates NBD (ENBD) is set to acquire a 60% controlling stake in RBL Bank through a preferential issue, for approximately $3 billion (Rs. 26,850 crore). This deal will also trigger a mandatory open offer by ENBD to purchase up to 26% of the shares from public shareholders. The transaction, already approved by shareholders, remains subject to regulatory approvals.
Capital and Financial Impact
The capital position of RBL remains comfortable with CET I and CRAR at 13.51% and 15.02%, respectively, as of September 30, 2025. The ENBD equity infusion is expected to significantly boost the bank’s capital base, supporting net interest margin (NIM) and overall profitability. ICRA anticipates that RBL’s operational efficiency will improve, supporting profitability.
Monitorable Aspects
ICRA will continue to monitor the progress of the ENBD transaction. Key factors influencing future rating actions include receipt of regulatory approvals, ENBD’s strategy for RBL, and the extent of ENBD’s involvement. A potential negative trigger would be failure of the ENBD transaction or significant deterioration in asset quality.
Operational Efficiency and Deposit Base
RBL’s deposit base is improving, but the share of granular deposits remains a key area of focus. The bank’s ability to garner deposits at lower costs is expected to improve post-ENBD deal, improving its cost of interest-bearing funds. Granularizing the liability profile through branch network expansion will be a key factor for protecting profitability.
Source: BSE
