A different deal for RBS in India?
Decks have been cleared for Royal Bank of Scotland (RBS) to retain the private banking unit of ABN Amro in India and Indonesia. This is a departure from the actual deal signed between the acquirers of ABN Amro - RBS, Fortis and Santander - where the Belgian bank Fortis was to get ABN Amro’s private banking business, worldwide. Despite the agreement, India and Indonesia have been kept out since Fortis does not have a banking licence in these countries and may not get a new licence anytime soon.
However, Fortis will get an entry into India since it will go ahead with the takeover of ABN Amro’s asset management company (AMC) in the first quarter of next fiscal. A consortium of RBS, Fortis and Santander took over the Dutch bank late last year. Under the consortium deal, RBS will get ABN Amro’s North American business, excluding LaSalle ABN’s US banking operation, which was sold to Bank of America. RBS will also get ABN’s European business, excluding some portions.
Fortis will get its operations in Netherlands, the global private banking business - excluding Latin America - and also the global asset management business. Santander will get Italian bank Antonveneta, Dutch credit firms Interbank and DMC Consumer Finance and most of the Latin American operations.
In Asia, RBS is taking over the corporate and retail division of the bank in Asia while AMC and private banking, internationally, would go to Fortis. Confirming the move, ABN Amro executive vice-president and CEO (India) Meera H Sanyal said, “Private banking in India and Indonesia will be a part of Royal Bank of Scotland. We are delighted that we will be able to offer uninterrupted services to our private banking clients.”
The private bank units in both countries are an integral part of the bank and separating them would have been a problem. Also, both RBS and Fortis do not have a banking licence in India. In India, most of the banking business will be taken over by RBS. In both countries, the Dutch bank had an onshore private banking presence. A decision to this effect was taken in the past few days.
The local private banking unit has assets under management (AUM) of around $1.4 billion with 56 employees. In retail banking, the bank had different products to cater to all segments of the market, including high-end retail banking. The private banking unit here has a customer base of over 2,000. And the unit is present in six cities in the country. The three banks are awaiting permission of the Dutch regulator for the final deal to go through. Post-approval, the banks will approach individual regulators in respective countries.
In India, ABN Amro AMC has an AUM of Rs 8,529 crore as on January 31. Fortis does not have a presence in the mutual fund industry. ABN Amro is present in 16 countries across Asia.
Will this exploit into India be a boon or a bane for RBS?
However, Fortis will get an entry into India since it will go ahead with the takeover of ABN Amro’s asset management company (AMC) in the first quarter of next fiscal. A consortium of RBS, Fortis and Santander took over the Dutch bank late last year. Under the consortium deal, RBS will get ABN Amro’s North American business, excluding LaSalle ABN’s US banking operation, which was sold to Bank of America. RBS will also get ABN’s European business, excluding some portions.
Fortis will get its operations in Netherlands, the global private banking business - excluding Latin America - and also the global asset management business. Santander will get Italian bank Antonveneta, Dutch credit firms Interbank and DMC Consumer Finance and most of the Latin American operations.
In Asia, RBS is taking over the corporate and retail division of the bank in Asia while AMC and private banking, internationally, would go to Fortis. Confirming the move, ABN Amro executive vice-president and CEO (India) Meera H Sanyal said, “Private banking in India and Indonesia will be a part of Royal Bank of Scotland. We are delighted that we will be able to offer uninterrupted services to our private banking clients.”
The private bank units in both countries are an integral part of the bank and separating them would have been a problem. Also, both RBS and Fortis do not have a banking licence in India. In India, most of the banking business will be taken over by RBS. In both countries, the Dutch bank had an onshore private banking presence. A decision to this effect was taken in the past few days.
The local private banking unit has assets under management (AUM) of around $1.4 billion with 56 employees. In retail banking, the bank had different products to cater to all segments of the market, including high-end retail banking. The private banking unit here has a customer base of over 2,000. And the unit is present in six cities in the country. The three banks are awaiting permission of the Dutch regulator for the final deal to go through. Post-approval, the banks will approach individual regulators in respective countries.
In India, ABN Amro AMC has an AUM of Rs 8,529 crore as on January 31. Fortis does not have a presence in the mutual fund industry. ABN Amro is present in 16 countries across Asia.
Will this exploit into India be a boon or a bane for RBS?
posted by Charltonmedia.com | 12:54 AM
