Subsidiary framework launched in 2013
Was rumoured to be acquiring IDBI Bank
India’s central bank has given an “in-principle” approval to Emirates NBD Bank, Dubai’s biggest bank by assets, to set up a wholly owned subsidiary in India.
The Dubai-listed lender currently offers banking services through branches in Chennai, Gurugram and Mumbai, the Reserve Bank of India (RBI) said in a statement.
The approval allows Emirates NBD to set up a wholly owned subsidiary by converting its existing branches in India.
The central bank introduced the wholly owned subsidiary framework in 2013 to facilitate foreign banks to localise operations. The framework allows these lenders to acquire stakes in private sector banks.
Investment in India has proved a mixed bag for Dubai entities. In March AGBI reported that Emaar, the emirate’s flagship property developer, was in advanced talks with Adani Group to sell its Indian unit for $1.4 billion.
Local media reported last year that Emirates NBD was in the race to acquire a majority stake in state-run IDBI Bank.
The Dubai-headquartered bank has had a presence in India since November 2017 by investing $100 million capital.
Shares in Emirates NBD closed nearly 4 percent higher at AED23.40 on the Dubai Financial Market on Monday.
Investment Corporation of Dubai, one of the emirate’s sovereign wealth funds, owns 41 percent of the bank.
