Mumbai, Oct. 13 -- Dubai's Emirates NBD Bank PJSC is in talks to buy a controlling stake in Indian private lender RBL Bank Ltd for over $1 billion, two people with direct knowledge of the discussions said.

"Emirates NBD Group is likely to acquire around 26% stake in RBL Bank from institutional investors, and then make an open offer for another 25%," one of the persons said. If the transaction concludes successfully, the Dubai government entity will end up holding around 51% stake in the domestic lender. Global investment bank JP Morgan is advising Emirates NBD on the deal.

The discussions underscore multinational financial firms' growing fascination with India. Japan's Sumitomo Mitsui Banking Corp. recently acquired a 20% stake in Yes B...