RBL Bank Shares Soar Amidst Major Merger Plans

RBL Bank's shares surged over 9% following the announcement of a USD 3 billion investment from Emirates NBD Bank, marking the largest FDI in India's financial services. The merger is set to complete by June next year, transforming RBL into a 'listed foreign bank subsidiary' in India.

RBL Bank experienced a significant boost in its stock prices, which soared over 9% on Monday. The surge follows the bank's announcement of a USD 3 billion fund infusion from Emirates NBD Bank, poised to be the largest foreign direct investment in India's financial services sector.

On the Bombay Stock Exchange, RBL's shares climbed 9.13%, closing at INR 326.85, while peaking at INR 328.90 during trading hours—its highest in 52 weeks. The National Stock Exchange also registered a 9% rise, with shares settling at INR 326.65.

The upcoming merger will see RBL Bank become a 'listed foreign bank subsidiary' in India, aligning with NBD's subsidiary. Management emphasized aspirations to expand into a more prominent banking position, enhancing corporate loan offerings and entering wealth management.

(With inputs from agencies.)