RBS to sell Asia-Pacific equities' business

Royal Bank of Scotland (RBS), on Monday, said it has reached an agreement with Malaysian financial services major CIMB Group to sell its cash equities, equity capital markets and mergers and acquisition businesses in India as well as in 10 other Asia-Pacific markets for around 75 million pounds ($120 million). According to the English lender, cash equities businesses in India, Australia (excluding the interest in RBS Morgans), China, Hong Kong, and Taiwan, including the cash equities sales desk in the U.S. and Britain, will be sold to the CIMB Group. Similarly, RBS will exit equity capital markets and M&A businesses in India, Australia and China (excluding activities carried out by Hua Ying Securities), Hong Kong, Indonesia, Malaysia, Singapore, Taiwan and Thailand. RBS had entered into an agreement with HSBC India to sell its retail banking business way back in 2010, but is yet to get the Reserve Bank nod for the same. “The principal benefit of this sale to RBS is to mitigate partially the shutdown costs otherwise associated with these businesses. The cash consideration , is expected to be circa 75 million pound,” the bank said. Keywords: Royal Bank of Scotland