HSBC acquires RBS' India business worth USD 1.8 bn | Latest News India - Hindustan Times
close_game
close_game

HSBC acquires RBS' India business worth USD 1.8 bn

PTI | By, New Delhi
Jul 02, 2010 04:26 PM IST

The Hongkong and Shanghai Banking Corporation, on Friday, announced it will acquire the Indian business of Royal Bank of Scotland worth USD 1.8 billion, a move that will help the British giant gain greater exposure in the country.

The Hongkong and Shanghai Banking Corporation, on Friday, announced it will acquire the Indian business of Royal Bank of Scotland worth USD 1.8 billion, a move that will help the British giant gain greater exposure in the country.

HT Image
HT Image

RBS’s retail and commercial banking businesses in India currently have 1.1 million customer relationships served by over 1,800 staff through 31 branches.

Hindustan Times - your fastest source for breaking news! Read now.

HSBC expects to complete the acquisition through its Indian subsidiary by the first half of 2011. "The total consideration will comprise a premium of up to USD 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 per cent of any credit losses incurred on the unsecured lending portfolio in the two years subsequent to deal completion," HSBC said in a statement in New Delhi.

This is the third major transaction for HSBC in India. In June 2008, HSBC entered into a joint venture insurance company with Canara Bank and Oriental Bank of Commerce, gaining access to a distribution network of 5,000 branches and 50 million customers. In September 2008, HSBC acquired IL&FS Investsmart, now HSBC InvestDirect, a major retail brokerage with more than 130,000 customers and outlets across 52 cities.

HSBC Group Chief Executive and Chairman of The Hongkong and Shanghai Banking Corporation Limited, said: "The main focus of our strategy is on emerging markets and this acquisition is our third transaction in one of the world's largest and fastest growing developing markets in the last two years."

India was the second fastest growing economy in the world by GDP last year and is set for another strong year with forecast GDP growth of 8.5 per cent in 2010. According to the International Monetary Fund, it is expected to be the world's third largest economy, based on purchasing power parity, by 2012.

Unveiling Elections 2024: The Big Picture', a fresh segment in HT's talk show 'The Interview with Kumkum Chadha', where leaders across the political spectrum discuss the upcoming general elections. Watch now!

Get Current Updates on India News, Election 2024, Mukhtar Ansari Death News Live, Bihar Board 10th Result 2024 Live along with Latest News and Top Headlines from India and around the world.
SHARE THIS ARTICLE ON
Share this article
SHARE
Story Saved
Live Score
OPEN APP
Saved Articles
Following
My Reads
Sign out
New Delhi 0C
Friday, March 29, 2024
Start 14 Days Free Trial Subscribe Now
Follow Us On