HSBC takeover RBS in India?

  blognreviews 07:43 04 Aug 10
Locked

Royal Bank of Scotland Group (RBS) will now be acquired by Hongkong Shanghai Banking Corporation (HSBC) in India with a gross value of $1.8 billion as decided on 31 March 2010. Although the number of RBS branches are still not transferred and the clearance will be done by Reserve Bank of India. The regulatory approvals will be completed in the first half of 2011. 1,800 RBS staff employees will be transferred to HSBC

HSBC to acquire part of RBS biz in India

Hongkong & Shanghai Banking Corporation (HSBC) announced on Friday that it has decided to acquire the retail and commercial banking businesses of Royal Bank of Scotland Group (RBS) in India with a gross asset value of $1.8 billion as on 31 March 2010. The total consideration will comprise a premium of up to $95 million over the tangible net asset value of the businesses being acquired at the closing of the transaction, less an adjustment equal to 90% of any credit losses incurred on the unsecured lending portfolio in the two years subsequent to the completion of the deal. HSBC has not disclosed the number of branches of RBS that are to be transferred to it after getting clearance from the Reserve Bank of India. RBS's retail and commercial banking businesses in India currently have 1.1 million customers, about 1,800 staff and 31 branches.
In connection with seeking the required regulatory approvals, HSBC will apply to the RBI for branch licences required to support the acquired businesses.
As on March 31, 2010, the retail and commercial banking businesses comprised gross assets of 1.2bn ($1.8bn) and the risk weightage assets stood at 0.7bn ($1.1bn). The transaction will be effected by way of an asset and liability transfer.
RBS plans to retain some of its branches in India to carry out the range of businesses which it is retaining. The acquisition, which is subject to regulatory approvals, is expected to be completed in the first half of 2011.
The bank said, "For now, it is business as usual for retail and commercial businesses. The businesses, which would be handed over to HSBC, will be valued once we get a clearance from the RBI."
"The branding exercise will start only after we get an approval from the Indian regulator," said a HSBC spokesperson. HSBC Global Banking and Markets advised HSBC on this transaction.
RBS said 1,800 staff employed by it will be absorbed by HSBC after completion of the deal.
Following the exit of the retail and commercial businesses in India, RBS will continue to retain a strong footprint in the sub-continent as it will remain on one of the bank's core markets for global banking & markets, global transaction services business and RBS private banking, which employs over 280 people.
RBS is a leading global wholesale and investment bank, transaction and private bank in Asia Pacific with a significant presence in 11 markets, including India.
India is one of four key locations globally for business services hubs with centres in Mumbai, Delhi and Chennai employing over 8,000 people.

RBS is seen to be one of the leading global wholesale and investment bank in Asia Pacific with 8,000 people as employers. The branding exercise will start only after the regulatory approvals by RBI. The total consideration comprises of $95 million over the net tangible a

  GANDALF <|:-)> 08:01 04 Aug 10

...and your point is? Why not just provide a link rather than wholesale cut n'paste? We can all read the news.

G

  morddwyd 08:03 04 Aug 10

And?

  Kevscar1 08:24 04 Aug 10

so

  lotvic 16:27 04 Aug 10

A new kind of Spammer:

'blognreviews' is James McGlynn and clever boy he has a twitter page and wants us all to 'find' him
and then via twitter find our way to ****sn*******.com which is where you find the HSBC article he has spam pasted on pca forum

OK, I found him (out)

  morddwyd 20:12 04 Aug 10

Thank you, lotvic.

I suspected some sort of spam, but couldn't for the life of me work out why!

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