MUMBAI, Apr 10: Hinduja Group-promoted IndusInd Bank has agreed to buy Royal Bank of Scotland’s diamond and jewellery financing business in the country for an undisclosed sum.
The loan book of RBS in diamond and jewellery financing segment is about Rs 4,500 crore and also includes clients of ABN Amro Bank. Accordingly, IndusInd has also simultaneously entered into an agreement with ABN Amro, which is one of the oldest banks in this business, IndusInd Bank said in a statement.
The city-based bank said the deal is subject to regulatory approvals.
If the deal gets regulatory approval, all the employees within the division and clients would move to IndusInd Bank.
IndusInd Bank is already into diamond and jewellery financing business and this acquisition will enhance its position in the segment.
On the long-term partnership agreement with ABN Amro, IndusInd said this strategic relationship will facilitate deeper industry and client insights and in turn lead to improved client servicing, enhanced revenue opportunities and better risk management.
“This proposed acquisition fits nicely into our strategy of creating scale with profitability in select business segments. The partnership with ABN Amro Bank will be an important pillar for both organisations to stay deeply engaged with customers in the industry globally,” IndusInd Bank head Romesh Sobti said.
RBS has been trying to exit its operations in India since its UK-based parent went into a government bailout after the 2008 global credit crisis.
After the Reserve Bank had in 2012 spiked a deal to sell its retail banking business to rival HSBC, RBS had said it would wind down its business gradually.
RBS has merely 20 branches in the country spanning just 10 cities.
In August 2013, RBS had sold its credit card business, mortgage and commercial banking portfolios to mid-sized private sector lender Ratnakar Bank. The deal included acquiring about 1,20,000 customers and employees.
RBS still retains its presence in the wholesale business and offers financing, risk management, investment banking, cash, payments, trade finance and wealth management solutions to its clients. (PTI)
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