Hindujas snap up KBC’s private banking arm for $1.69 billion

Diversified international conglomerate Hinduja group will buy KBL European Private Bankers, the Luxembourg-based banking and insurance company KBC's private banking arm, for €1.35 billion ($1.69 billion), the two parties said in a statement on Friday.

The KBL subsidiary is one of Europe's largest onshore private banking groups, with local affiliate banks in 55 locations across 10 European countries, and had assets under management worth Euro 47 billion.

The Hinduja's banking business consists of the IndusInd Bank in India and the Hinduja Bank Switzerland.

''The Hinduja group intends to grow KBL internationally by using the group's business interests in more than 100 countries,'' said the joint statement.

The divestment is the largest to date by KBC in a restructuring plan required by the European Commission in return for €7 billion of state aid. Hinduja will push further into Europe, adding to its private bank in Switzerland.

''We plan to invest further in the business, maintaining each of the subsidiaries, while also providing KBL with access to the fast growing markets of the Middle East, the Indian subcontinent and Asia,'' said Hinduja group chairman Srichand P Hinduja.