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Gupta's company Sanctum Wealth Management will take over the RBS
private banking unit's onshore clients and staff, the bank said
in a statement on Thursday. Sanctum plans to retain all branch
networks currently operated by RBS private banking in India, it
said.
RBS did not give financial details of the deal.
The bank announced the sale of overseas business of British
wealth manager Coutts to Switzerland's Union Bancaire Privee in
March. The India private banking business was not part of that
deal.
The transfer of the business to Sanctum is expected to be
completed by the end of first quarter next year after getting
the regulatory approvals, RBS said.
Many foreign wealth managers had scrambled to open up shop in
India a few years ago and aggressively ramped up operations to
take advantage of robust economic growth, only to find
themselves struggling.
Although Asia's third-largest economy has been minting
millionaires at a strong pace, it has failed to translate into
profits for the foreign wealth managers that have set up teams
of well-paid bankers to help manage those riches.
Cut-throat competition, high staff costs and weak markets are
squeezing revenue of the top private banks, while growth
opportunities are limited by regulations that restrict product
offerings.
(Reporting by Sumeet Chatterjee; Editing by Muralikumar
Anantharaman)
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