The Reserve Bank of India (RBI) has granted an in-principle approval to Emirates NBD Bank PJSC, one of the UAE’s leading financial institutions, to establish a wholly owned subsidiary (WOS) in India. This move marks a significant step in the bank’s expansion strategy within the Indian market.
Currently, Emirates NBD operates in India through branch offices in Chennai, Gurugram, and Mumbai. The approval will allow the bank to convert its existing branches into a fully incorporated local entity. The RBI stated that final authorization to commence banking operations under the WOS model will be granted upon fulfillment of specific regulatory conditions.
The WOS model offers a higher degree of regulatory oversight and local governance. It also mandates that the foreign bank maintains its own capital base, board of directors, and ring-fenced assets within the host country, enhancing financial transparency and stability. The RBI requires that any foreign bank seeking this model must be subject to consolidated supervision in its home country, aligning with international prudential standards.
India currently allows foreign banks to operate only through branches, and the WOS option provides a more structured presence in the country. With this transition, Emirates NBD will join a select group of international banks permitted to set up subsidiaries, reinforcing India’s openness to global banking players under stringent regulatory safeguards.
The RBI emphasized that the local subsidiary structure ensures effective regulatory control, clear asset and liability demarcation from the parent institution, and better protection for depositors.
Emirates NBD’s expansion in India comes amid strong financial performance. The bank reported a 56% quarter-on-quarter increase in pre-tax profit to Dh7.8 billion for the first quarter of 2025. Net profit also grew 56% over the previous quarter to Dh6.2 billion, although it was slightly down from Dh6.7 billion in Q1 of 2024.
The Dubai-based bank recently surpassed Dh1 trillion in total assets, driven by robust growth in both lending and deposits.
As Emirates NBD prepares to deepen its presence in India, the WOS structure will enhance its ability to offer a wider range of services while complying fully with Indian regulatory frameworks.
