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RBS to wind up India operations

30Royal Bank of Scotland (RBS) is expected to close operations in India and 24 other countries as part of its effort at cost cutting and improve returns for shareholders. The bank made the announcement after it made public its annual results for 2014. The banl will, however, retain its back offices in India and Poland. RBS Business Services, the bank’s global back office in India, employs 7,100 employees. Besides these employees, the bank also has 800 people employed in its 10 branches and institutional and corporate banking business currently operational in India. But as an operating unit, the bank will exit India. The Indian operations include corporate and investment banking and some retail banking. RBS acquired the Indian business after its acquisition of Dutch bank ABN Amro Bank in 2007 by a three-bank consortium that also included Fortis Banque and Banco Santander. The acquisition, however, proved costly for the UK bank, which needed a £46 billion (Rs 4.43 trillion) bailout by the British government after the global financial crisis in September 2008. The total assets of the bank in India shrank to Rs.20,366 crore in financial year 2013-14 from Rs.26,360 crore in 2012-13. In 2013, the bank shut 21 of its 31 branches and later divested its loan exposure to individuals and small and medium enterprises to RBL Bank. Confirming the development, a spokesperson said RBS will sell or run down the corporate and institutional banking businesses in Asia Pacific, of which India is a part.

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