HSBC Closes In On RBS Business In India

HSBC is closing in on the purchase of the bulk of Royal Bank of Scotland's (RBS) business in India more than two years after the two British banks agreed a deal.

I understand that formal approval from the Reserve Bank of India for the transaction, which will see HSBC buying the majority of RBS's 30 branches in the country, is expected within the next fortnight. The two banks will then confirm the approval in separate statements.

The deal, initially announced in 2010, is likely to see HSBC paying approximately £70m for the business, which also includes RBS's commercial banking operations in India. People close to the deal said that that was a lower price than that agreed two years ago.

The sale will be the latest step in RBS's ongoing efforts to shrink its international business, which has seen it offload operations in a string of Asian countries including Indonesia and Taiwan following its rescue by British taxpayers in 2008.

RBS will retain an investment banking presence in India, according to people close to the bank.

HSBC and RBS declined to comment.