The growing interest of global lenders in mid-sized Indian banks is evident, with Dubai-based Emirates NBD offering to acquire up to 60% stake in RBL Bank through a preferential issue and open offer at ₹280 per share — valuing the deal at nearly $3 billion, or about 1.1 times its FY25 book value.

Key Highlights

• Emirates NBD to invest $3 billion for 60% stake in RBL Bank at ₹280 per share.
• SMBC acquires 24.2% stake in Yes Bank through multiple transactions at 1.3–1.4 times book value.

Meanwhile, Japan’s Sumitomo Mitsui Banking Corporation (SMBC) has purchased a 24.2% stake in Yes Bank through multiple transactions, paying around 1.3–1.4 times its FY25 book value.

For comparison, Federal Bank trades at about 1.7 times, and IDFC First Bank at 1.5 times FY25 book value, reflecting strong investor confidence in India’s mid-tier lenders.

Operationally, RBL Bank reported a 15% year-on-year rise in advances to ₹1 lakh crore in Q2 FY26, despite net profit declining nearly 20% due to higher costs. Federal Bank’s advances grew 6.1%, while IDFC First Bank saw 19.5% growth and a 76% rise in profit aided by lower provisioning. Yes Bank’s net profit rose 18.3% year-on-year to ₹654 crore, driven by steady credit growth.

Also Read: Global Banks Invest Billions in India as US Credit Market Wavers

Analysts expect the Emirates NBD–RBL Bank deal to significantly bolster RBL’s capital base, enabling faster expansion. With RBI’s measures to spur lending and festive demand rising, India’s mid-sized banks appear poised for an active growth phase amid global investor interest.