On Friday, RBS announced that it has entered into an agreement with HSBC to sell its retail and commercial banking business in India, involving portfolios with a gross asset value of $1.8 billion as of March 31.
The total consideration will comprise a premium of up to $95 million over the tangible net asset value TNAV of the businesses being acquired at the close of the transaction, less an adjustment equal to 90% of any credit losses incurred on the unsecured lending portfolio in the two years subsequent to deal completion.
Completion, subject to regulatory approvals, is expected in the first half of 2011. In addition to seeking the required regulatory approvals, HSBC...
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