Mumbai, Oct. 18 -- Emirates NBD is set to acquire a majority stake in RBL Bank Limited for $3 billion or Rs.26,850 crore, marking the largest ever foreign direct investment and equity fundraise in the Indian banking sector. The news comes barely five months after RBI granted in-principle approval to the Dubai bank to establish a wholly owned subsidiary in India.

It will also mark the largest fundraise via preferential issuance by a listed company, and the first acquisition of majority interest in a "profitable Indian bank" by a foreign bank, the company said in a joint release. It added that the proposed transaction underscores ENBD's long-term commitment to the Indian market, and long-term confidence in India's fast-growing financial se...