RBS to close down Indian operations
The Dollar Business Bureau
After crucially examining the number of options for survival in India, the Royal Bank of Scotland, largest state-owned bank of Britain, has decided to shut down its operations in India.
Excluding its back office which supports the global network, RBS decided to end the Indian operations due to losses.
While confirming the news, the bank’s spokesperson confirmed that the closure of branches has already begun and customers are being informed about the shutdown. The retail banking branches will be closed in a phased manner.
A spokesperson from the Bank revealed that the onshore loans portfolio have been sold. The exit of the bank from retail, corporate and institutional businesses has been planned in a phased manner.
The bank started informing its customers about the move and assured them of complete support. While assuring that no major trouble will be given to the customers, the bank has been communicating to its customers about the transition and its consequences.
However, the back office unit operations will not be affected in the process. There are about 7,000 employees working for the back office unit and 1,000 for the retail banking operations at the 10 branches dotted across India.
The spokesperson stated that the employees who were associated with the retail and corporate businesses will be given complete support and will be treated in a fair manner, keeping in view the policies of RBS.
Earlier in 2013, RBS had announced that it was in the process of consolidation of its commercial and retail businesses in India.
RBS India was bought from ABN Amro in 2007. After the financial crisis, RBS put in all efforts to boost the institutional and corporate banking, but to no vain. Australia's ANZ purchased the banking operations of RBS in 6 countries in 2009. The Indian assets were yet to be sold because of regulatory confirmations.
Later in 2013, RBS sold its mortgage portfolio and credit card business to Ratnakar bank. Sanctum Wealth, a firm founded by Shiv Gupta, with the support of few venture capital investors, took over the management control of RBS’ assets valued at Rs.12,000 crores.
