PE-backed Ratnakar Bank buys part of RBS' India business

The deal is subject to approvals from the Competition Commission. Ratnakar will acquire about 120,000 customers through the deal and absorb RBS employees associated with the portfolios. RBS will continue to operate its corporate and institutional business and private banking in India.

RBS had struck a deal in 2010 to sell its retail and commercial banking businesses to HSBC, but it fell through last year because not all of the commercial terms of the deal could be satisfied, according to an HSBC statement.

Ratnakar Bank said the transaction complements its existing business and would also enhance its low-cost current and savings account deposits in a in a very short span of time.

The bank has a customer base of over 450,000 with a book of INR145 billion. Its deposits grew by 75.98% over the year, at INR83.4 billion compared to INR47.3 billion in FY12.Net interest income was up by 37.8%, increasing to INRINR2.5 billion from INR1.86 billion the year before.

Ratnakar raised over INR3.7 billion in April through the sale of 30 million shares to International Finance Corporation, Ascent Capital, Aditya Birla Private Equity, Faering Capital, IDFC and ICICI's Emerging India Fund.

The bank had previously raised over INR7 billion from HDFC, Gaja Capital, Norwest Venture Partners,Samara Capital, Beacon Capital, Faering Capital,TVS Shriram and Cartica Capital in 2011.

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• Topics
• South Asia
• Financials
• India
• Financial Services