Emirates NBD Gets RBI’s Nod to Set Up Wholly Owned Subsidiary in India

Mumbai: The Reserve Bank of India (RBI) has granted in-principle approval to Emirates NBD Bank PJSC, one of the UAE’s largest banking groups, to establish a wholly owned subsidiary (WOS) in India.

Currently, Emirates NBD operates in India through branch offices located in Chennai, Gurugram, and Mumbai. The RBI’s approval allows the bank to convert these existing branches into a locally incorporated subsidiary, marking a significant shift in its operational structure within the country.

In a statement, the RBI said:
“The RBI would consider granting a license to commence banking operations in WOS mode under Section 22(1) of the Banking Regulation Act, 1949, upon satisfying that Emirates NBD has met all requisite conditions outlined in the in-principle approval.”

Foreign Banks and the WOS Model in India

At present, most foreign banks operate in India via branch models. However, RBI encourages the WOS model to ensure better regulatory control and stronger capital buffers. To establish a WOS, a foreign bank must demonstrate that it is under adequate prudential supervision in its home country, adhering to internationally accepted regulatory standards, including consolidated supervision.

The WOS framework requires the creation of a separate legal entity with its own capital base and a locally appointed board of directors. This model ensures a clear separation of the Indian subsidiary’s assets and liabilities from those of the parent entity and provides local regulators with more effective oversight.

Strong Financial Performance

The RBI’s approval comes on the back of Emirates NBD’s robust financial performance. For Q1 2025, the bank reported a 56% quarter-on-quarter increase in profit before tax, reaching AED 7.8 billion. Net profit also rose by 56% over the previous quarter to AED 6.2 billion, although it was slightly down from AED 6.7 billion in Q1 2024.

The bank’s balance sheet crossed the AED 1 trillion milestone, supported by strong loan and deposit growth.

The move to a WOS structure is expected to deepen Emirates NBD’s presence in India and enhance its ability to offer a wider range of banking services while complying with local regulations more effectively.