The bank would commence closing its retail banking branches in a phased manner and has started informing its customers
Britain's largest state-owned bank, Royal Bank of Scotland NV (RBS) is winding up operations in India.
The bank confirmed that it would commence closing its retail banking branches in a phased manner and has started informing its customers.
Barring its back office unit that will support its global network, RBS will cease to be functional in India.
RBS operations have been struggling to contain losses.
AT A GLANCE
Closure time
In May 2013, RBS had announced it had started the process of consolidating its retail and commercial banking business in India. As a result, RBS had shut 23 of its 31 branches in India.RBS India business was acquired from ABN Amro in 2007. But after the financial crisis, RBS decided to focus on its core strength – institutional and corporate banking and sold off its banking operations in six countries to Australia's ANZ in 2009.
A spokesman said: "After examining a number of options for our banking business in India, we decided to wind down our corporate, institutional and retail banking businesses in India. We sold the onshore loans portfolio and initiated the corporate and institutional business exit earlier this year."
"We are now in a position to initiate a phased exit of our retail bank branches in India. We are committed to fully supporting all our customers through this transition and have commenced informing them about this decision and how it will affect them. We will ensure the least possible disruption to our customers."
The spokesperson said, "We are committed to providing our employees with a range of support and will ensure that they are treated in a fair and transparent manner in line with RBS' principles and local policies."
RBS was operating through 10 retail bank branches across India. "The Global Hub India business that operates across India will continue to provide strategic support to the bank and to its customers and will continue to deliver vital bank functions for the RBS global network," the bank added in its release.
RBS has been in the process of shrinking its business in India. In May 2013, the lender had announced it had started the process of consolidating its retail and commercial banking business in India. As a result, RBS had shut 23 of its 31 branches in India.
RBS India business was acquired from ABN Amro in 2007. But after the financial crisis, RBS decided to focus on its core strength – institutional and corporate banking and sold off its banking operations in six countries to Australia's ANZ in 2009. Indian assets were excluded due to concerns on regulatory approvals.
Later, it managed sell its credit card business and mortgage portfolio to Ratnakar Bank in 2013 and its private banking arm in a management buyout in September last year. Sanctum Wealth, a firm led by Shiv Gupta and backed by a clutch of venture capital investors, bought out the wealth management business of RBS, taking control of the management of assets worth nearly Rs 12,000 crore.
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