RBL Bank surges most in 5 years after biggest stake-sale deal in Indian banking

Shares of RBL Bank Ltd. jumped to its highest in nearly five years after the private lender struck the biggest stake-sale deal in India's banking history.

RBL Bank's stake sale to Emirates NBD is seen as the biggest foreign investment in India's financial services sector. (Livemint)

On Monday, RBL Bank share price rose as much as 5.05% on the BSE even as the benchmark Sensex gained over 650 points as the stock market opened today. That's the highest level since at least early 2020. The stock was among the top percentage gainers on Nifty Bank, which was trading about 1% higher.

Dubai's Emirates NBD Bank PJSC has agreed to buy 60% stake in RBL Bank in what is seen as the biggest foreign investment in India's financial services sector.

The middle-eastern bank will invest ₹26,853 crore—about $3 billion—in the the private lender via a preferential issue of shares, according to an exchange filing in Mumbai on Saturday. The deal is subject to regulatory approvals. The Reserve Bank of India has informally communicated its backing for the deal, Reuters has previously reported.

The RBL-Emirates NBD deal comes months after Japan's Sumitomo Mitsui Banking Corp.'s bought up to 25% stake in Yes Bank Ltd.