The Royal Bank of Scotland (RBS), which recently announced that it is selling its retail and commercial portfolio to HSBC, is further slashing its retail portfolio.
The bank has informed its card holders that their limits have been slashed by almost 25%.
When contacted, RBS officials said that they needed to verify the development from the various departments and would revert.
Recently, HSBC announced its decision to acquire the retail and commercial banking business of RBS, with portfolios with a gross asset value of $1.8 billion as on March 31, 2010. The bank said that the acquisition, which is subject to regulatory approvals, is expected to be completed in the first half of 2011.
The total consideration will comprise a premium of up to $95 million over the tangible net asset value of the businesses being acquired at the closing of the transaction, less an adjustment equal to 90% of any credit losses incurred on the unsecured lending portfolio in the two years subsequent to deal completion. RBS?s retail and commercial banking businesses in India has 1.1 million customer relationships served by over 1,800 staff through 31 branches. In connection with seeking the required regulatory approvals, HSBC will apply to the Reserve Bank of India for branch licenses required to support the acquired businesses. ? The branding exercise will start only after we get an approval from the Indian regulator,? said a HSBC spokesperson.
Following the exit of the retail and commercial businesses in India, RBS will continue to retain a strong footprint on the sub-continent as one of the core markets for its global banking & markets, global transaction services business and RBS private banking, which employs over 280 people.
RBS is a leading global wholesale and investment bank, transaction and private bank in Asia Pacific with a significant presence in 11 markets, including India. Meanwhile, RBS has also fixed its base rate at 6.50% per annum with effect from July 1, 2010.