IndusInd To Acquire RBS's India Jewellery Business

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16 April, 2015

IndusInd Bank Ltd said it would buy Royal Bank of Scotland's diamond and jewellery financing business in India and the related deposit portfolio.

RBS's India diamond and jewellery financing loan book is about 45 billion rupees ($721.7 million) in size, IndusInd said in a stock exchange filing on Friday. It did not give a value for the deal.

RBS employees within the business will also move to IndusInd Bank, the Indian lender said, adding it had also signed a pact with ABN AMRO Bank NV for cooperation in diamond and jewellery financing business.

"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.

(Agencies)