The British banking and financial services giant, HSBC is all set to acquire 23 branches of Royal Bank of Scotland in India. The acquisition of RBS branches by HSBC was announced in July 2012 but HSBC's negotiations with Reserve Bank of India could become fruitful only now.
The merger between HSBC and RBS will increase HSBC's total number of branches in the country from 50 to 73. It is reported that the negotiations between HSBC and RBI is likely to continue on selection of locations for the new branches.
At present, 15 cities in India have both RBS and HSBC branches. In these 15 cities RBS has a total of 31 branches, out of which it will continue to retain 8, post the acquisition.
It is to be noted that since the year 2000, there have been many mergers and acquisitions (M&A) between banks in the Indian foreign banking scenario. In 2000, Standard Chartered Bank acquired ANZ Grindlays Bank's business in India. Then in 2007, Standard Chartered Bank again went on to acquire a banking business unit of American Express Bank. In 2011, there were two major M&As involving foreign banks, the first one was when Indian private sector lender, IndusInd Bank acquired Deutsche Bank's credit card business. Following this, Kotak Mahindra Bank and Standard Chartered Bank jointly acquired Barclays' credit card business.