After the Yes Bank-SMBC deal, attention has shifted to the progress made by Dubai-based Emirates NBD Bank in picking up stake in Indian private lender RBL Bank.

The UAE’s second-largest bank by total assets is in advanced negotiations to buy a controlling stake in RBL Bank, according to industry sources. The deal will be through a preferential allotment of equity shares and warrants. 

The Dubai bank is looking to buy around 25% stake in RBL Bank, which is to be followed by an open offer for another 26%. 

The Reserve Bank of India (RBI) is open to allowing Emirates NBD Bank a controlling stake in RBL Bank, sources said.

As per regulations, the Reserve Bank of India (RBI) is likely to cap the voting rights of the Dubai entity at 26%.

If the deal concludes, it will in a way be unique as RBL Bank has no promoter group and is fully owned by public shareholders, including domestic institutions and mutual funds. As of 30 June, retail investors owned 47.69% in the bank, domestic institutional investors 34.72%, foreign institutional investors 17.56% and insurance companies 3.26%.

RBL Bank closed Monday with a market capitalisation of 17,728 crore.

As of 30 June, the Kolhapur-based bank, which started as Ratnakar Bank in 1943, has a total business of Rs 2.07 lakh crore through its 562 branches.

In its latest business update, RBL Bank said its deposits stood at Rs 1.16 lakh crore as of 30 September, up 8% from the year-ago period, while total loans were at Rs 1.02 lakh crore, up 14% year-on-year. Total business was at Rs 2.18 lakh crore.

Emirates NBD Bank was previously in talks to acquire a stake in IDBI Bank.

Earlier this year, Japan’s Sumitomo Mitsui Banking Corporation (SMBC) acquired a 20% stake in Yes Bank. It picked up an additional 4.2% stake in the Mumbai-based private lender in September.