RBS continues disposals gets US$1.6bln from JP Morgan, to sell Indian banking ops to HSBC

The Royal Bank of Scotland Group (LON:RBS) has received US$1.6 billion, following the completion of the previously announced sale of a commodities trading business to  JP Morgan Chase (NYSE:JPM). Earlier this year, the companies agreed the deal which sees the major US financial institution acquire RBS Sempra Commodities’ (RBSSC) Metals, Oil and European Energy businesses.
The FTSE100 banking group, which is 84%-owned by the UK Treasury, said it is actively marketing RBSSC's remaining North American Power and Gas, and Sempra Energy Solutions businesses.
In a separate statement, HSBC (LON:HSBA) announced that it has agreed to acquire the RBS retail and commercial banking businesses in India.

HSBC will pay a US$95m premium over the tangible net asset value on closing, for the acquired businesses - which have portfolios with gross asset value of US$1.8bn as at 31 March 2010 – and the transaction is expected to complete in H1 2011. HSBC also noted that the final consideration would also include and adjustment for 90% of any credit losses incurred on unsecured lending portfolios, in the two years after the deal is complete.

RBS's retail and commercial banking businesses in India currently have 1.1 million customer relationships served by over 1,800 staff through 31 branches.

"We have made excellent progress in recent months with our disposal of non-core assets, resulting in over 20 businesses sold so far”, RBS chief financial officer Bruce Van Saun commented.