Ratnakar Bank to acquire RBS assets

Private sector lender Ratnakar bank will acquire Royal bank of Scotland’s (RBS) Business Banking, Credit Cards and Mortgage business in India.

The Kolhapur-based bank would also acquire over 1.2 lakh customers of RBS across the three business segments which form the part of the purchase deal. The RBS employees associated with these businesses are proposed to be absorbed by Ratnakar Bank.

The deal size was not disclosed by the bank.

The RBS assets sale was on the cards for the past few months with many banks in the race, including Yes Bank, IndusInd Bank and HSBC among others.

“We are glad we were not the one of the banks in the speculation and still have managed to purchase the RBS assets. The portfolios are of high quality and will give a strong platform over and above our existing business,” said a person familiar with the deal.

The business banking holds high transactional current account and forex franchise. Our mortgage business was 8-12 months old and this will add to the portfolio, the person added.

The transaction is expected to help the Bank create further capabilities in a very short span of time and enhance the current and savings account (CASA). RBS customers would also get access to the larger and expanding branch network along with broader banking capabilities of Ratnakar Bank.

This will also mark Ratnakar Bank’s entry into the credit card business.

Over the last three years the bank has been building scale with the entry of new CEO and Managing Director Vishwavir Ahuja and other top management changes.

The acquisition will be subject to approvals from Competition Commission of India (CCI).

Derek Nazareth, Head of Retail and Commercial Banking, RBS India said: “Over the next few weeks we will be writing to all of our clients who are affected, and working closely with Ratnakar Bank to ensure a seamless transition for our customers.”

PricewaterhouseCoopers were the advisors to Ratnakar Bank while Morgan Stanley and RBS M&IB Asia Pacific advised to RBS.

There is no impact on RBS’s Corporate and Institutional Business (Markets and International Banking) or its Private Banking businesses in India. RBS will continue to offer financing, risk management, wholesale and investment banking, cash, payments, trade finance and a comprehensive range of wealth management solutions to its clients.

Source: thehindubusinessline