RBI Grants In-Principle Approval to Emirates NBD Bank PJSC
- The Reserve Bank of India (RBI) has granted in-principle approval to Emirates NBD Bank PJSC to set up a wholly owned subsidiary (WoS) in India.
- The Dubai-based lender will convert its existing branches in Mumbai, Chennai, and Gurugram into a single subsidiary structure.
- RBI will grant a final licence after verifying compliance with the stipulated conditions under the in-principle approval.
The Reserve Bank of India (RBI) has granted in-principle approval to Emirates NBD Bank PJSC to establish a wholly owned subsidiary (WoS) in India, marking a significant milestone for the Dubai-based banking group’s expansion in the country. The approval allows the lender to consolidate its Indian operations by converting its existing three branches located in Mumbai, Chennai, and Gurugram into a single subsidiary structure.
According to the RBI, the bank will be permitted to commence operations under the WoS model after fulfilling all regulatory requirements laid down as part of the in-principle approval. “The RBI would consider granting a licence for commencement of banking business in WoS mode… on being satisfied that the bank has complied with the requisite conditions”, the central bank said.
Emirates NBD, headquartered in Dubai, made its initial entry into the Indian market in 2017 with the inauguration of its first branch in Mumbai. India became the sixth country in which the bank has an onshore presence, following the UAE, Saudi Arabia, Egypt, Singapore, and the United Kingdom. In October 2021, the bank received the RBI's permission to expand further by opening branches in Chennai and Gurugram.
The bank’s Indian operations cater primarily to corporate, SME, and institutional clients, offering a suite of services including trade finance, treasury solutions, and syndicated loans. Additionally, the bank provides wealth management solutions to non-resident Indian (NRI) clients seeking cross-border investment options.
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Emirates NBD is among a select group of foreign banks that have received regulatory clearance to operate through a wholly owned subsidiary model in India. Other global lenders using this model include DBS Bank India and SBM India. Banks under the WoS framework enjoy benefits such as parity with domestic banks for branch expansion and exemption from prior RBI approval, subject to specific conditions.
The development comes amid reports that Emirates NBD is among the foreign players eyeing a stake in IDBI Bank. The Indian government and Life Insurance Corporation (LIC) are jointly offloading a combined 60.72% stake in the lender, with the sale expected to conclude in 2025.
