Sanctum Wealth has acquired Indian wealth management arm of Royal Bank of Scotland (RBS) N.V. India. Subject to regulatory approval, the final deal is expected to be completed by the first quarter of FY 2015-16.
This deal comprises acquisition of existing management team and onshore clientele. Sanctum will retain existing branches of RBS in Mumbai, Delhi, Chennai and Bengaluru. The bank has not disclosed the value of this deal. However, a few media reports suggested that it would be valued at Rs.200 crore.
Sanctum Wealth is a startup floated by a team of led by Shiv Gupta who is heading the business of RBS Private Banking in India. Most of the team members of Sanctum Wealth are from the bank itself. Sources privy to the development said that the company has raised money from a few venture capital firms to acquire RBS private banking.
In a press release, Shiv Gupta, Founder of Sanctum Wealth said, “Sanctum Wealth is fully committed to India and to maintaining continuity and stability for our clients and people. Through this business transfer arrangement, 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.”
Brijesh Mehra, Country Executive, RBS N.V. India said, “Over the past few years, RBS has made considerable investments in the Private Banking business in India. 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 RBS India Private Banking franchise.”
AMFI data shows that RBS N.V. India has assets under advisory of Rs.3143 crore as on March 2014. Also, the bank has received commission of Rs.23 crore in FY 2013-14.
With over 30 million customers RBS group operates in the UK, Europe, the Middle East, America and Asia. The firm provides a wide range of products and services to personal, commercial and large corporate and institutional customers through its two principal subsidiaries, the Royal Bank of Scotland and NatWest.
