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HSBC secures RBS Indian assets

HSBC secures RBS Indian assets

(5 June 2010 – India) HSBC, the self proclaimed ‘world’s local bank’ has extended its global reach after acquiring the Indian commercial and retail banking assets of British state-controlled Royal Bank of Scotland. HSBC has agreed to acquire the Royal Bank of Scotland’s retail and commercial banking businesses in India, the group said in an official statement.

Naina Lal Kidwai, chief executive, HSBC India, said that the transaction is an important addition to HSBC’s existing network and testament to the bank’s ambition to expand its footprint in India.

India is home to about 1.15 billion people, representing 17 percent of the world's population, Mr Kidwai added.

The bank sees tremendous growth potential in this country, both in helping domestic and international companies capture opportunities in India's growing trade and investment flows with the world and in meeting the financial needs of its rising affluent consumer market, highlighted the bank’s boss.

The Indian divisions have a gross asset value of 1.8 billion dollars, as at March 31, 2010, while the deal is expected to close in the first half of 2011.

Chief executive Michael Geoghegan speaking in New Delhi, said the purchase was in line with the bank's strategy.

The main focus of HSBC’s strategy is on emerging markets and this acquisition is our third transaction in one of the world’s largest and fastest growing developing markets in the last two years, said Mr Geoghegan.

The combination of HSBC’s leading position in emerging markets and its distinctive financial strength means that the bank is strongly placed to take advantage of opportunities like this for the benefits of customers and shareholders, Mr Geoghegan highlighted.
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