Advertisement

RBS exits India to shrink non-core assets

Royal Bank of Scotland (RBS) is no longer selling its Indian retail and commercial banking operations to HSBC. Instead, it will be winding down what was a profitable business.

Royal Bank of Scotland (RBS) is no longer selling its Indian retail and commercial banking operations to HSBC. Instead, it will be winding down what was a profitable business.

RBS agreed to sell the business to HSBC in July 2010, but the deal lapsed on Friday November 30th. The Indian operations are profitable and in the nine-month period to September 30th generated revenue of £42m.

Advertisement - Article continues below

In a statement RBS said: "Consistent with RBS's strategic objective to reduce or exit its non-core assets and businesses, it will begin to wind-down its retail and commercial banking business in India, whilst meeting all customer obligations."

The Indian business operates from 31 branches and serves 400,000 customers. With total assets of £190m it accounts for only around 0.5% of the group's remaining non-core assets (£65bn).

On Thursday, Bank of England Governor Mervyn King signalled that UK banks may need to build up the capital they hold against potential losses.

CM

Advertisement
Advertisement

Recommended

Visit/investments/investment-strategy/601044/broker-safety-your-questions-answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
Visit/investments/investment-strategy/600861/how-demographics-affects-stock-valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Visit/investments/stocks-and-shares/600863/sirius-minerals-anglo-american-takeover
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020
Visit/investments/stockmarkets/600634/why-investors-should-be-cautiously-bullish-for-2020
Stockmarkets

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular

Visit/economy/inflation/601584/the-end-of-the-bond-bull-market-and-the-return-of-inflation
Inflation

The end of the bond bull market and the return of inflation

Central bank stimulus, surging post-lockdown demand and the end of the 40-year bond bull market. It all points to inflation, says John Stepek. Here’s …
30 Jun 2020
Visit/investments/property/601606/house-prices-crash-uk-property-prices-falling-where-next
Property

House price crash: UK property prices are falling – so where next?

With UK property prices falling for the first time in eight years, are we about to see a house price crash? John Stepek looks at what’s behind the sli…
2 Jul 2020
Visit/investments/commodities/gold/601587/bullish-gold-price-cup-and-handle-chart-pattern
Gold

This chart pattern could be extraordinarily bullish for gold

The mother of all patterns is developing in the gold charts, says Dominic Frisby. And if everything plays out well, gold could hit a price that invest…
1 Jul 2020