Global banking giant HSBC's attempt to acquire UK-based RBS' Indian retail and commercial banking business has failed, with the transaction deadline expiring on Friday.
HSBC said that the requisite conditions for the deal could not be met in time. The bank however told London Stock Exchange in a regulatory filing that it would remain committed to pursuing growth in India.
On July 2, 2010, RBS had announced the sale of its retail and commercial banking business in India, estimated to be worth around $1.8 billion (about Rs 8,500 crore), to HSBC.
RBS, which has already indicated that its objective would be to either trim or exit the non-core assets, said it would start to wind-down its retail and commercial banking business in India, as per its plan while meeting all customer obligations.
"The agreement for the acquisition by The Hongkong and Shanghai Banking Corporation Limited of The Royal Bank of Scotland Group Plc's Indian retail and commercial banking businesses has expired as the long stop date of 30 November 2012 has been reached without all conditions required to close the transaction being satisfied," HSBC said. RBS also said that the deal would not go through.