RBS to close down India business as it shrinks global assets: Sources

Royal Bank of Scotland (RBS) will close its corporate banking operations in India as part of a plan to sell or shut businesses in two-thirds of the countries it operates in, a person familiar with the situation said

Reuters| Updated: Apr 11, 2016, 19:24 PM IST
RBS to close down India business as it shrinks global assets: Sources

London: Royal Bank of Scotland (RBS) will close its corporate banking operations in India as part of a plan to sell or shut businesses in two-thirds of the countries it operates in, a person familiar with the situation said.

RBS, which was briefly the world`s largest bank by assets, has spent the eight years since a 45 billion pound ($64 billion) government bailout cutting costs and reorganising.

It is closing the Indian business after failing to find a buyer, the person told Reuters on Monday.

Earlier this year, Reuters reported Singapore`s biggest lender DBS Group Holdings and South African banking group FirstRand were in separate talks to buy the unit.

"After examining a number of potential sale options for our banking business in India, we have concluded that it is not feasible to sell the business in its entirety," the bank said in a statement.

"We will now look at other options which may include a wind down or sale of individual parts."

The decision to close the India business is part of Chief Executive Ross McEwan`s strategy announced last year to operate in 13 countries, down from 38.

McEwan has cut thousands of jobs and assets to reduce expenses, in a bid to boost earnings after eight straight years of losses.