HSBC Holdings said it would buy the Indian retail and commercial banking businesses of Royal Bank of Scotland as the part-nationalised UK bank continues its retreat from overseas markets.
HSBC said it would pay a premium of up to $95 million over the tangible net asset value of the businesses when the deal completes, expected in the first half of next year. The price could be reduced if bad debts in the business increase during the next two years.
'RBS in talks to sell India unit to HSBC'
Sources have previously said HSBC would buy the businesses, which have 1.1 million customers, over 1,800 staff and 31 branches. The portfolios had a gross asset value of $1.8 billion at the end of March.
HSBC currently has about 2 million customers and 50 branches across 29 cities in the hard-to-enter Indian market.
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RBS, 83 percent owned by the UK government, has sold a string of small non-core business in recent weeks as it refocuses on its key strengths. It is reversing a decade-long international expansion drive and has raised over $2.5 billion from exiting or selling over 20 businesses in the last 14 months.