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Dark horse Ratnakar Bank has pipped YES Bank and IndusInd Bank in the race to buy Royal Bank of Scotland’s business banking, credit cards and mortgage businesses in India.
In the process, the Kolhapur-headquartered private sector bank will gain over 1.2 lakh RBS customers across the three business segments. RBS employees associated with these businesses are proposed to be absorbed by the bank.
The deal size, however, was not disclosed by either of the banks.
RBS has been trying to sell the three units for the last couple of years, due to troubles at its headquarters because of which it wanted to get out of non-core businesses. YES Bank, IndusInd Bank and HSBC, among others, were in the race to buy the foreign bank’s assets.
“The portfolios are of high quality and will give us a strong platform over and above our existing business,” said an official with Ratnakar Bank.
RBS has a high-value current account and forex business. Its mortgage business is 8-12 months old and this will add to the portfolio, the official added. The acquisition of RBS’ credit card business will help Ratnakar Bank foray into a new line of business. The three business segments are expected to help the bank enhance its CASA (current account savings account) deposits.
RBS customers will also get access to Ratnakar Bank’s network of 131 branches and 217 ATMs.
Over the last three years, Ratnakar Bank has been trying to build scale.
The acquisition will be subject to approvals of the Competition Commission of India.
Derek Nazareth, Head of Retail and Commercial Banking, RBS India, said: “Over the next few weeks, we will be writing to all our clients and work closely with Ratnakar Bank to ensure a seamless transition for our customers.”
RBS will continue to offer financing, wholesale/investment banking, and trade finance and wealth management solutions to its clients.
PricewaterhouseCoopers was the advisor to Ratnakar Bank, while Morgan Stanley and RBS M&IB Asia Pacific advised RBS on the deal.
beena.parmar@thehindu.co.in
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