Royal Bank of Scotland (RBS) has decided to close its corporate banking operations in India as a part of Chief Executive Ross McEwan's plan to limit RBS operations to 13 out of the present 38 countries. The decision to wind down its Indian units comes after its failure to find a buyer due to the stringent regulations on acquisition of banking businesses in India. Earlier this year, RBS was reported to be involved in separate talks with Singapore-based lender DBS Group Holdings and South Africa-based banking group FirstRand to buy the Indian unit.
RBS plans to complete the winding down process by the year-end and this may involve the loss of 700 jobs in India. However, the bank has decided to continue its 13,000 strong global back-end operations in India.
At present, RBS India offers retail banking services to limited customers through its 10 branches and provides financial services to institutional and corporate clients.