RBS moves hands again, account holders to get HSBC brand
HSBC is set to take over the Indian retail and commercial banking operations of Royal Bank of Scotland, which in turn is largely the acquired operations of ABN Amro Bank in the country.india Updated: Jul 02, 2010 20:48 IST
HSBC is set to take over the Indian retail and commercial banking operations of Royal Bank of Scotland (RBS), which in turn is largely the acquired operations of ABN Amro Bank in the country.
The value of the deal is at a $95 million (Rs. 427-crore) premium to the net asset valuation which has not been announced yet. At the end of last March, the RBS portfolio was worth $1.8 billion (about Rs 8,100 crore).
The transaction involving 31 branches, 1,800 employees and 1.1 million customer relationships of RBS is expected to be completed in the first half of 2011.
HSBC, in its bid expand presence and services in India, acquired IL&FS Investmart in 2008 and also entered into insurance joint ventures with Canara Bank and Oriental Bank of Commerce the same year. ABN Amro had built up its presence in India by acquiring the retail business of Bank of America. That went briefly to Barclays before becoming a part of RBS.
RBS said on Friday it would retain its presence in the country in its core businesses — global banking and markets, global transaction business and private banking for the Asia Pacific region.
“After the sale of its Retail & SME (small and medium enterprise) businesses, RBS will continue as a leading global wholesale and investment bank, transaction services and private bank in Asia Pacific with a significant presence in 11 markets, including India and China,” Madan Menon, country head, global banking & markets, RBS N.V. India, said.
HSBC on the other hand is looking to consolidate its position in the emerging markets.
“The combination of HSBC’s leading position in emerging markets and our distinctive financial strength mean that we are strongly placed to take advantage of opportunities like this for the benefit of customers and shareholders,” said Michael Geoghegan, HSBC Group CEO and chairman of HSBC Ltd.
RBS has sold over 20 businesses over 18 months to focus on its core businesses on a path to sustainable recovery.