mumbai, Oct. 20 -- RBL Bank Ltd expects to secure regulatory approvals in the next five to six months for a $3 billion investment from Emirates NBD, a deal that would ultimately transition the Indian private bank into a wholly-owned subsidiary of a foreign entity. The Dubai-based lender is expected to make the first tranche of its investment in eight months from now, managing director and chief executive officer R. Subramaniakumar said on Sunday. A day earlier, the two lenders had announced what would be the biggest foreign direct investment in the Indian banking sector. At a press conference on Sunday, RBL Bank executives did not comment on any potential rebranding or identity shift after the ownership change. Asked if Emirates NBD might see more value in retaining RBL Bank's domestic identity or opt to expand the business under its own bigger global brand patronage, the management hinted at the possibility of a joint name. Subramaniakumar said the deal value was based on the strong franchise built by RBL Bank and is expected to be positive for all stakeholders including shareholders and investors. "We are not a distressed bank," he said, adding the ambition is to become "bolder" before taking any other big strategic decisions. The deal, which comes just weeks after Japan's Sumitomo Mitsui Banking Corp bought 24.2% in Yes Bank, signals the central bank's greater comfort in allowing foreign banks to invest in local financial institutions. While India's FDI regulations allow overseas investors to purchase up to 74% in banks, RBI regulations restrict ownership by a single foreign investor at 15%. The regulator has relaxed these norms in certain instances, but voting rights remain capped at 26%. A consultant advising on such deals said the RBI is now more comfortable with the idea of more foreign capital in banking. "The regulator understands that local banks need capital to bolster their balance sheets and allowing foreign capital will help," the consultant said on the condition of anonymity. "It is India's mid-sized private sector banks that could be targets of acquisitions in future." The RBI wants strategic investors who will stay invested for at least a decade or two, the consultant added. RBI governor Sanjay Malhotra told CNBC TV18 in July that the central bank had not yet received any case where a foreign bank wants to own 26% in Indian banks. "As per the FDI policy, the foreign banks are allowed up to 74%. Foreign banks can certainly have 26% stake in an Indian bank," he said. The RBL Bank deal comes barely five months after RBI granted in-principle approval to Emirates NBD to establish a wholly-owned subsidiary in India. India allows foreign banks to operate either as a branch or a wholly-owned subsidiary of the parent. All except two - DBS Bank India and SBM Bank India - work as branches. A local unit gives more flexibility to the bank than a branch. RBL Bank aspires to grow significantly in the next three to five years, powered by the new capital. Building a wholesale loan portfolio is among its plans. "This opens up significantly new opportunities across many areas. Obviously, it will need execution and time for doing that, but the ability to be a much more full-service bank across all areas of banking and potentially financial services is there for us to execute over the next five years," head of strategy Jaideep Iyer said. Subramaniakumar said these opportunities could include businesses such as asset management and insurance. "This will evolve," Iyer said. "But this really gives us an opportunity to break away from the crowd and just try and position ourselves in the range of some of the larger banks or one step lower." Banking sector experts also see this deal as a resurgence of foreign banks in India....