(Reuters) -Shares of Indian lender RBL Bank climbed more than 3% on Tuesday, hitting their highest level since January 2024, following media reports of talks with Dubai-based bank Emirates NBD for a stake sale.
The stock rose as much as 3.3% to 299.5 rupees and was the third-biggest gainer on the 10-member Nifty private banks index, which was trading flat.
The stock was last trading 1.3% higher.
Reuters reported on the talks on Monday, citing two people familiar with the deal.
The Dubai bank is looking to invest in the Indian lender via preferential allotment of equity and warrants, and the initial stake purchase could go up to 25%.
Reuters could not determine the value of the deal or if it will be announced imminently.
RBL Bank is the only stock on the Nifty private banks index to be rated “hold”, on average, by 18 analysts, as per data compiled by LSEG.
Analysts at ICICI Direct Research view the development favourably for RBL Bank.
“The entry of a large, well-capitalised global promoter like Emirates NBD could strengthen its (RBL Bank’s) governance standards and boost investor confidence,” the analysts said in a note.
The talks were first reported by Indian financial media outlets NDTV Profit and Moneycontrol.
(Reporting by Manvi Pant; Editing by Sonia Cheema and Harikrishnan Nair)
