RBS starts winding down retail, commercial operations in India
25 February 2013
Bailed out British lender Royal Bank of Scotland (RBS) yesterday said it would cut jobs in India as a part of its plan of winding down its retail and commercial operations in the country.
''As part of its winding down plans for the R&C (retail and commercial) business here, RBS India has reviewed its operating model and this will unfortunately lead to a number of job losses,'' the Scotland-based bank said in a statement.
The bank did not disclose how many jobs would be lost, but its R&C operations have nearly 1,000 people.
The winding down comes two months after it failed to sell the business operations to HSBC (See: RBS India sale of retail unit to HSBC falls through as deadline ends).
In July 2010, RBS agreed to sell its 31 branches, which had revenues of £42 million and a customer base of 400,000, to HSBC by end of November 2012. HSBC was due to pay a premium of up to $95 million over the tangible net asset value of RBS's retail business in India.
Neither RBS nor HSBC had offeredreasons for not going through with the deal and explained it away as a failure to complete all the details by the 30 November deadline for resolving all issues related to data and customer transfers and regulatory approvals.