A banker familiar with the matter was quoted by The Economic Times as saying, "The bids for asset have been submitted by the various banks, and we may hear of a deal being announced within two weeks."
Although it is unclear whether IndusInd will purchase any branches or other physical assets, the source noted that a deal could be announced soon.
RBS had been negotiating with potential acquirers for more than a year, apart from dealing with the valuation of the business with the concerned parties.
The operation, which serves high quality customer base, is expected to be valued at nearly INR1.5bn to INR2bn ($25.25m -$33.67m).
Morgan Stanley is acting as the i-banker for the deal.
The UK lender sought permission from Indian banking regulators to offload the Indian business and entered into an acquisition agreement with HSBC in July 2010, but the deal fell apart and was scrapped on 30 November 2012.
Acquired in 2007 as part of ABN Amro takeover by RBS, Fortis, and Santander consortium, the Indian retail & commercial operations generated revenues of £42m in the nine months to September 2012, and had £190m in assets.
The UK government rescued the bank in 2009, after it posted losses of $34bn and is currently selling or withdrawing non-core assets globally under a major restructuring program.
