Royal Bank of Scotland is exiting India private banking business in a management buyout, wherein the current head of the unit would take over the operations.
"The Royal Bank of Scotland NV today signed an agreement to transfer the India private banking business to Sanctum Wealth Management," RBS India said in a statement today.
Sanctum is a city-based company that will be led by Shiv Gupta, who heads the private banking business, and the existing management team.
The deal comprises transfer of client relationships and staff, it added.
Existing branches in Mumbai, Delhi, Chennai and Bengaluru will also be retained by Sanctum, it said, adding it hopes to conclude the deal by March.
RBS country executive Brijesh Mehra said: "We gave careful consideration in identifying a buyer that would minimise the impact to clients and staff and is committed to building on the investments made in the private banking franchise."
"We look forward to leveraging the strong foundation of the existing private banking business and taking it to further heights, through investments in people, technology, products and partnerships," Gupta said.
There was speculation of a management buyout at the wealth management arm of RBS. The arm reportedly has USD 2.5 billion of assets under management. The Edinburgh-based bank's move to sell wealth management arm follows similar exits by UBS Group, Morgan Stanley and Macquarie Group.
