RBS to shut down Indian operation after deal to sell it to HSBC collapses
Saturday 01 December 2012
Taxpayer-controlled Royal Bank of Scotland is to wind down its operations in India after a deal to sell the business to HSBC struck two years ago collapsed.
It would have seen HSBC pay some £59m over the net book value of RBS's Indian business, which has gross assets of £190m.
The official line from both sides yesterday was that the transaction had become hugely complex and dragged on for so long that both sides agreed to give it up.
But sources close to the deal suggested that it had become bogged down in red tape and regulatory issues.
The Indian business, which was profitable, has 31 branches and services 400,000 customers. In the nine months to September it generated revenues of £42m.
The bank said that as part of chief executive Stephen Hester's strategy to exit non-core businesses it would now put India into an orderly wind-down.
The breakdown comes after a sale of 316 RBS branches to Santander for £1.6bn collapsed in October.
- 1 UK weather: Snow to fall in the coming week with sub-zero temperatures to last until early February
- 2 Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
- 3 The enemy within: People who hear voices in their heads are being encouraged to talk back
- 4 Phil Neville backtracks on Tomas Rosicky 'I'd smash him' comments from Match of the Day 2
- 5 British grandmother Lindsay Sandiford faces execution by firing squad in Indonesia
Paris attacks: Do not call Charlie Hebdo killers 'terrorists', BBC says
UK weather: Snow to fall in the coming week with sub-zero temperatures to last until early February
Asteroid narrowly scrapes past Earth: how to watch the closest space rock for decades as it flies by
Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
Prince Philip set to be knighted by Australia: Celebrate by reading his greatest gaffes
Nigel Farage: NHS might have to be replaced by private health insurance
'We would evict Queen from Buckingham Palace and allocate her council house,' say Greens
French court convicts three over homophobic tweets, in case hailed as a 'significant victory' by LGBT rights campaigners
Greece elections: Syriza and EU on collision course after election win for left-wing party
British Muslim school children suffering a backlash of abuse following Paris attacks
George Galloway condemns 'racist, Islamophobic, hypocritical rag' Charlie Hebdo at freedom of speech rally
iJobs Money & Business
£30000 - £32000 per annum + benefits : Ashdown Group: A highly successful, int...
£18000 - £20000 per annum: Recruitment Genius: This rapidly expanding business...
£25 - 28k + Bonus: Guru Careers: An In-house / Internal Recruiter is needed to...
Negotiable: Recruitment Genius: A Tax Assistant is required to join a leading ...