A recent press report said that HSBC and Royal Bank of Scotland (RBS) are expected to meet banking regulator RBI to make decisions on the issue related to the awaiting acquisition of select assets of RBS.
A report said that the senior management from RBS and HSBC has planned to meet the RBI. According to the report the RBI is yet to clear the deal as it is not in favour of transferring branch licenses to HSBC as part of the deal since it was a portfolio sale. It also said that the transfer of branches is critical to the valuation and the fate of the deal.
Reports said that RBS has got hold of 31 branches in the country when it bought out ABN Amro Bank’s Asian operations in 2007, had decided to retain five branches and surrender the remaining to RBI. Following this, HSBC was to apply for fresh licenses.
HSBC is the world’s second-largest banking and financial services group and second-largest public company according to a composite measure by Forbes magazine. Its loan portfolio includes home loan, personal loan, car loans, loan against property, education loan etc.