As part of the transaction, the acquirer will get nearly 1.2 lakh of RBS’ customers, which will enable it to boost its banking services beyond Maharashtra.
RBS, which is 80% owned by the UK’s government, said that the sale is a part of its three-year-old strategy to divest non-core assets, including its retail and commercial business in India.
After the proposed sale of the business, it will continue to focus on India, through its private banking as well as corporate banking operations, with offices in 10 cities.
The transaction is subject to receipt of approval from the Competition Commission of India. The British lender last year attempted to divest the operation to HSBC, but it could not succeed.
Ratnakar Bank strategy and markets head Rajeev Ahuja said "RBS had built an extremely high quality business in India which is rich in current accounts and it will be our endeavour to ensure that we not only maintain the existing customer proposition, but also enhance it further."
The UK bank, which manages 35 on-site and 85 off-site ATMs, will not transfer its ATMs or branch offices, but will combine its 31 branches into 10 locations in India.
Following the sale, the bank will remain offering wholesale business financing, risk management, investment banking, cash, payments, trade finance and wealth management services to its customers in India.
