IndusInd Bank on Friday said it has entered into an agreement with the Royal Bank of Scotland NV (RBS) to acquire its diamond and jewellery financing business in India and related deposit portfolio, subject to regulatory approval.
“This is part of ABN AMRO Bank NV’s diamond & jewellery clients that is housed in Royal Bank of Scotland NV acting through its Mumbai branch in India,” it said. RBS’ diamond and jewellery financing loan book size is approximately R4,500 crore, the release said.
The day-to-day management of the loan portfolio will remain with RBS till ownership of the loans transfer to IndusInd Bank, it said.
IndusInd Bank said it specialises in the diamond and jewellery financing business 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, it said.
“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, one of the oldest banks in diamond and jewellery financing,” said Romesh Sobti, MD & CEO at IndusInd Bank.
IndusInd Bank has 727 branches and 1,350 ATMs in India as on December 31, 2014, according to the release.