Royal Bank of Scotland is set to wind up operations in India after it could not find a buyer for the business in view of the possible delay in regulatory approval for such a deal. The bank has already sold most of its non-core businesses in India as part of its plans to withdraw from several countries. The bank has been looking out for a buyer of its remainder Indian business and the newly floated IDFC Bank and DBS were interested in deals, but the fear that the regulatory processes would take a long time led to the talks not making any progress. The bank now feels it is better to wind up the operations than looking out for a buyer as it is vary of the heavy costs in running the business which has not been profitable at all. The Indian business of the bank involves providing financial services to institutional and corporate clients, as well as some retail banking, through 10 branches. This business, the bank expects to wind up by the end of 2016. It will lead to some 700 job losses even as the bank has decided to retail some employees in India for running its back office functions. Earlier, the bank had found buyers for some of its Indian assets. It sold its credit card business and mortgage portfolio to RBL Bank in 2013, and its private banking arm in a management buyout in September last year.
