The Royal Bank of Scotland diamond and jewellery financing loan book is around Rs 4,500 crore in size.
Private sector lender IndusInd Bank has entered into an agreement to buy the diamond and jewellery financing business of Royal Bank of Scotland India and the related deposit portfolio.
The Royal Bank of Scotland diamond and jewellery financing loan book is around Rs 4,500 crore in size.
IndusInd has also signed a partnership agreement with ABN Amro Bank, one of the oldest banks in diamond and jewellery financing.
Until ownership of the loans transfer to IndusInd Bank, the day-to-day management of the loan portfolio will remain with RBS. Employees within diamond and jewellery clients in India will also move to IndusInd.
IndusInd Bank specialises in diamond and jewellery financing and this acquisition will enhance its position. Several members of IndusInd Bank's senior management had been associated with this portfolio in RBS and prior to that in ABN Amro Bank.
Romesh Sobti, MD & CEO, IndusInd Bank, said in a statement, "This acquisition fits nicely into our strategy of creating scale with profitability in select business segments. We like this business and have a deep insight into the industry. We are also happy to reach a partnership agreement with ABN Amro Bank. This partnership will be an important pillar for both organisations to stay deeply engaged with customers in the industry globally."
IndusInd stock price rose 0.26 % to close at Rs 945.45 a piece on the BSE.
A critical success factor in diamond financing is global client knowledge and this is being achieved through a long-term partnership agreement with ABN Amro Bank, IndusInd said. This strategic relationship will facilitate deeper industry and client insight and in turn, lead to improved client servicing, enhanced revenue opportunities and better risk management, it said.
The credit growth for IndusInd Bank is growing above the industry average. The advances of the bank at the end of the third quarter grew 22% to Rs 63,847 crore over the previous year, driven by the growth on corporate advances. The corporate advances of the bank grew 32% over the previous year to Rs 36,836 crore and the consumer finance advances grew 10% over the previous year to Rs 27,011 crore.
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