India, Oct. 20 -- Shares of RBL Bank Ltd. jumped to its highest in nearly five years after the private lender struck the biggest stake-sale deal in India's banking history.

On Monday, RBL Bank share price rose as much as 5.05% on the BSE even as the benchmark Sensex gained over 650 points as the stock market opened today. That's the highest level since at least early 2020. The stock was among the top percentage gainers on Nifty Bank, which was trading about 1% higher.

Dubai's Emirates NBD Bank PJSC has agreed to buy 60% stake in RBL Bank in what is seen as the biggest foreign investment in India's financial services sector.

The middle-eastern bank will invest Rs.26,853 crore-about $3 billion-in the the private lender via a preferential...