Royal Bank of Scotland Group Plc, Britain’s biggest taxpayer-owned lender, agreed to sell part of its Indian operations to Ratnakar Bank Ltd. after talks with HSBC Holdings Plc collapsed last year.
The purchase of RBS’s business banking, credit card and mortgage units, is subject to approval by the Competition Commission of India, the companies said in a joint statement today. The takeover will affect about 120,000 of RBS’s clients in the country. Financial terms weren’t disclosed.
RBS said it would consider closing its Indian consumer and commercial banking operations after talks to sell them to HSBC, Europe’s largest bank by assets, collapsed last year. The Edinburgh-based lender is under pressure from regulators to sell assets to bolster capital after receiving the biggest bank bailout in the world.
“This transaction enables us to fast track our growth,” Rajeev Ahuja, head of strategy and markets at closely held Ratnakar Bank, said in the statement.
RBS’s private bank as well as its corporate and institutional banking unit in India are unaffected by the sale, according to the statement.