Twitter icon Email alerts icon Latest News RSS icon Magazine icon Stay connected:

View the article online at http://citywire.co.uk/wealth-manager/article/a638872

More gloom for RBS as King warning is followed by £190m failed sale

by Sarah Miloudi on Nov 30, 2012 at 11:13

More gloom for RBS as King warning is followed by £190m failed sale

Royal Bank of Scotland's plans to sell down its non-core assets have hit a road block after  talks to offload its Indian retail and commercial banking operation lapsed.

RBS, which this morning was one of four lenders named in the Bank of England's Financial Stability Report as needing to up its capital reserves, told investors discussions to sell the £190 million Indian operation had ended and the 'sale will not be proceeding'.

Mervyn King, the Bank of England governor, said earlier that the UK's large banks would be working with the Financial Services Authority (FSA) to enure they could meet regulatory and compensation demands.  Where it is felt a lender cannot, King said 'non-core' assets could be sold.

As announced in July, RBS, which is headed up by Stephen Hester (pictured), had hoped to sell its Indian retail and commercial banking operation to the Hong Kong and Shanghai Banking Corporation.

The talks lapsed on 30 November, RBS said this morning, adding it will continue to wind down the business, which at the end of September had £190 million in assets and generated revenue of £42 million over nine months to the same date.

RBS said the business is 'profitable' and accounts for around 0.5% of the group's remaining non-core assets.

leave a comment

Please sign in here or register here to comment. It is free to register and only takes a minute or two.

News sponsored by:

Sponsored Video: Bringing it all back home


As the UK coalition government strives to rebalance the national economy, so called 'reshoring' looks set to play an increasingly important role in economic recovery.

Today's top headlines

Sponsored Video: Barings on investing in Frontier Markets


From Nigeria to Pakistan and from Kenya to Kuwait, frontier markets are catching investors' attention as never before.

More about this:

Look up the shares

  • Royal Bank of Scotland Group PLC
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them

More from us

Archive

On the road

Click here to find out more from the Audience Development team.

Read more...

‘Old fashioned’ Jupiter takes the special route

by Dylan Lobo on Jul 30, 2014 at 12:59

Sorry, this link is not
quite ready yet