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Private sector lender IndusInd Bank on Friday entered into an agreement with the Royal Bank of Scotland (RBS) to acquire its diamond and jewellery financing business in India and related deposit portfolio, subject to regulatory approval.
RBS had acquired ABN AMRO Bank in 2008 and the latter’s diamond and jewellery clients in India were dealt through RBS’ Mumbai branch, using the old name.
Romesh Sobti, managing director and chief executive officer, IndusInd Bank, said, “This acquisition fits nicely into our strategy of creating scale with profitability in select business segments. We are also happy to reach a partnership agreement with ABN AMRO, one of the oldest banks in diamond and jewellery financing. This partnership will be an important pillar for both organisations to stay deeply engaged with customers in the industry globally.”
RBS’ diamond and jewellery financing loan book is approximately Rs 4,500 crore in size.
Employees within diamond and jewellery clients in India will also move to IndusInd Bank and will ensure seamless transition of the customer base.
The bank said that until ownership of the loans transfer to IndusInd Bank, day-to-day management of the loan portfolio will remain with RBS. Several members of IndusInd Bank’s senior management had been associated with this portfolio in Royal Bank of Scotland and prior to that in ABN AMRO Bank.
The bank further said a critical success factor in diamond financing is global client knowledge and this is being achieved through a long-term partnership agreement with ABN AMRO.
This strategic relationship is aimed at facilitating deeper industry and client insight and in turn lead to improved client servicing, enhanced revenue opportunities and better risk management.
RBS had acquired ABN AMRO Bank in 2008 and the latter’s diamond and jewellery clients in India were dealt through RBS’ Mumbai branch, using the old name.
Romesh Sobti, managing director and chief executive officer, IndusInd Bank, said, “This acquisition fits nicely into our strategy of creating scale with profitability in select business segments. We are also happy to reach a partnership agreement with ABN AMRO, one of the oldest banks in diamond and jewellery financing. This partnership will be an important pillar for both organisations to stay deeply engaged with customers in the industry globally.”
RBS’ diamond and jewellery financing loan book is approximately Rs 4,500 crore in size.
Employees within diamond and jewellery clients in India will also move to IndusInd Bank and will ensure seamless transition of the customer base.
The bank said that until ownership of the loans transfer to IndusInd Bank, day-to-day management of the loan portfolio will remain with RBS. Several members of IndusInd Bank’s senior management had been associated with this portfolio in Royal Bank of Scotland and prior to that in ABN AMRO Bank.
The bank further said a critical success factor in diamond financing is global client knowledge and this is being achieved through a long-term partnership agreement with ABN AMRO.
This strategic relationship is aimed at facilitating deeper industry and client insight and in turn lead to improved client servicing, enhanced revenue opportunities and better risk management.
