HSBC may look at buying product businesses of RBS

Feb 4 (PTI) HSBC today said it may look at acquisition of some product businesses of Royal Bank of Scotland (RBS) in Asia if that add value to its operations.

"It has to be strategic fit, it has to be at the right price we would look at it," HSBC India Group General Manager and CEO Naina Lal Kidwai said when asked whether the bank would look at the acquisition of product businesses of RBS if it is available for sale.

"We will look at everything as we should and determine fit and price and then decide...And for us certainly the region (Asia) is the focus," she said.

With RBS expected to come under intense pressure due to an anticipated losses in billions of dollars in 2008, it may sell parts or all of its Asian business.

According to reports, the bank is exploring options of selling entire product divisions, such as retail and investment banking, or portfolios like mortgage or credit cards. It may also sell various country operations, in some cases bundling products together.

RBS expanded Asian business by acquiring ABN Amro Bank two years ago that also gave the bank an entry into India.

However, as a result of global financial crisis, the UK government came to the rescue of the bank by acquiring majority stake in RBS.