HSBC to acquire Indian operations of RBS
by Gill Montia
Story link: HSBC to acquire Indian operations of RBS
Royal Bank of Scotland (RBS) is selling its Indian Retail & Commercial banking operations to HSBC.
Subject to regulatory approvals, the transaction will take the form of an asset and liability transfer that will complete in the first half of 2011, when just over 1,800 RBS staff will move across to HSBC.
According to the formula, HSBC will pay £63 million above the net asset value of the businesses, which according to some reports could be in negative territory.
However, RBS plans to retain a “strong footprint” on the Indian sub-continent via its Global Banking & Markets, Global Transaction Services and Private Banking operations.
RBS’s group chief financial officer, Bruce Van Saun, says: “We have made excellent progress in recent months with our disposal of non-core assets, resulting in over 20 businesses sold so far.”