RBS says sale of Indian operations lapses
Britain's bailed-out Royal Bank of Scotland (RBS) said on Friday that the sale of its Indian retail and commercial activities to HSBC had lapsed, adding it will seek to wind down the operations.
"The Royal Bank of Scotland Group today announces that the agreement to sell its Indian retail and commercial banking operations to the Hong Kong and Shanghai Banking Corporation Limited (HSBC) has lapsed with effect from 30 November 2012 and the sale will not be proceeding," it said in a statement.
"Consistent with RBS's strategic objective to reduce or exit its non-core assets and businesses, it will begin to wind down its retail and commercial banking business in India, whilst meeting all customer obligations.
"There will be no immediate change for customers who will continue to be served as they are today. Any changes impacting them will be notified in a timely way and will be designed to minimise disruption."
HSBC said in a separate statement that the acquisition had lapsed because all the conditions required to close the transaction had not been satisfied.
It added: "HSBC remains committed to pursuing growth in India, a key strategic market for the group, through its existing operations."
The deal, which was announced on July 2, was part of the Royal Bank of Scotland's ongoing efforts to offload non-core assets.
RBS, which is 81-percent owned by the government, has also slashed thousands of jobs in the wake of its enormous state bailout at the height of the global financial crisis.
© 2012 AFP