The Royal Bank of Scotland India, on Thursday said it would transfer the private banking business to Sanctum Wealth Management Pvt. Ltd., in a management buyout deal, wherein the current team that runs the business would take over the business under a separate company name.
The transaction follows a global move by RBS to sell its internally-managed private banking and wealth management business to Union Bancaire Privee, which included relationships managed out of Switzerland, Monaco, UAE, Qatar, Singapore and Hong Kong, but excluded the India onshore business.
The India business will now be taken over by Sanctum Wealth Management, a Mumbai-based company, led by Shiv Gupta, and consisting of the current management team. Gupta, is currently head of RBS Private Banking in India.
After the deal, Sanctum Wealth plans to retain the same branch network currently operated by RBS Private Banking in India, which includes Mumbai, Delhi, Chennai and Bangalore.
“This marks another step towards delivering the strategy to make RBS a stronger, simpler, more sustainable business, with a clear focus on the needs of customers in the UK and Western Europe,” RBS statement said. The transaction is expected to be completed by March 2016, the company said.