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Royal Bank of Scotland (RBS) on Thursday said it has trimmed its balance sheet exposure in India by £1.3 billion, as it reduced its lending to banks and companies in telecommunications and oil and gas sectors.
“(India) balance sheet exposure decreased by £1.3 billion to £3.8 billion, driven largely by reductions in lending to banks and to the telecommunications and oil and gas sectors,” RBS said in its annual report for the year ended December 31, 2013, released on Thursday.
The part-nationalised British lender, which was rescued by a UK government bailout during the 2008 financial crisis, reported a pre-tax loss of £8.2 billion in 2013. In recent weeks, reports had emerged that the bank was likely to axe nearly a quarter of its 120,000 workforce globally, as it planned to shrink its investment banking and international operations. The figure, however, included job losses from the previously-announced sale of its US retail business, Citizens, and separation of Williams & Glyn in the UK, the reports claimed.
It was not immediately clear if the foreign lender would also cut jobs in India. RBS closed FY13 (April-March) with 1,554 staff in India, Reserve Bank of India (RBI) data showed. A year earlier, its headcount in India was 1,951 employees.
RBS declined to comment specifically on job cuts in India.
In August 2013, RBS said it would sell a part of its India businesses — business banking, credit cards and mortgage portfolios — to Kolhapur-based Ratnakar Bank. The transaction involved transfer of around 120,000 RBS’ customers to Ratnakar Bank. The Indian private lender had also agreed to absorb the employees of RBS associated with these businesses.
The move followed RBS’ failed attempt to close a deal involving sale of its retail and commercial banking assets in India to Hongkong and Shanghai Banking Corporation (HSBC). RBS has also announced closure of its majority branches in India.
Currently, RBS has 10 branches in India, compared to 31 at the end of March 31, 2013.
