HSBC taking over RBS India banking operations

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mrinal ali hazarika

14 July, 2010

The Hong Kong Sanghai Banking Corporation has announced that it's going to take over The Royal Bank of Scotland (RBS) Group Plc's banking and commercial business operations in India, paying a whopping $95 million as premium.

THE HONG Kong Shanghai Banking Corporation has announced that it’s going to take over The Royal Bank of Scotland (RBS) Group Plc’s banking and commercial business operations in India, paying a whopping $95 million as premium. This new acquisition is subject to necessary regulatory approvals, which are most likely to be completed very soon.

Currently the gross asset value of RBS’ commercial and retail and commercial banking business in India is around $1.8 billion (about Rs. 8400 crores). It’s customer relationship stands around 1.1 million and it’s operated through 31 branches and run by 1,800 employees.

Michael Geoghegan, the CEO of HSBC said that their key focus is on the emerging and growing markets and this new acquisition will definitely help to expand their operations in India, one of the fastest growing and developing market place of the world. For the required regulatory approvals HSBC will apply to RBI and to issue the branch licenses. It’s worth noting here that in June 2008, HSBC started a insurance in collaboration with Canara Bank and Oriental Bank of Commerce. This joint venture enabled HSBC to gain a huge distribution network, comprising 5000 branches and a customer base of over 50 million.