London: The Royal Bank of Scotland (RBS) has said it was shutting down in India as a multi million pound deal to sell its branches to rival HSBC bit the dust.
RBS said the deal, first revealed two years ago and which would have seen HSBC pay a 59 million pounds premium over the Indian division’s book value of 190 million pounds, had lapsed.
It is understood that red tape and regulatory rules over foreign ownership of bank branches in India have scuppered the move.
RBS, which is looking to exit non-core businesses, said its Indian unit, which takes in 31 branches and 400,000 customers and ¬generated revenues of 42 million pounds in the nine months to September 30, would be wound-down.
However, HSBC said it remained committed to pursuing growth in India, the Daily Express reports.
The move follows the collapsed sale of 316 RBS branches to Spanish bank Santander in October.
First Published: Saturday, December 01, 2012, 18:47