M and A

RBS Offloads Parts Of India Retail Business To Local Bank

Vanessa Doctor, Asia Correspondent, 12 August 2013

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Royal Bank of Scotland has sold parts of its retail business in India to local bank Ratnakar Bank for an undisclosed amount, as part of an ongoing effort to let go of non-core assets worldwide. 

Upon completion of the deal, which is still subject to regulatory approvals, Ratnakar will take over the business banking, credit cards business and loan portfolio of RBS.

The Edinburgh-based bank has been trying to sell these assets over the past two years. In July 2010, it was supposed to sell its India retail business to HSBC but the deal fell through after failing to obtain the requisite approvals.

RBS will still maintain its retail banking presence in 10 locations, namely, Bangalore, Chennhai, Delhi, Gurgaon, Hyderabad, Kolkata, Mumbai, Noida, Pune and Vododara. It will not have any impact of the bank's institutional and private banking operations in the country.

Ratnakar presently has 5 lakh (500,000) clients and its total business is worth Rs14,500 crore ($2.4 billion).

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