New Delhi: IndusInd Bank has received Competition Commission approval for the acquisition of Royal Bank of Scotland's gems and jewellery financing business in the country.
Giving its clearance, the fair trade regulator said the proposed deal is "not likely to have an appreciable adverse effect on competition in India".
In the present case, Competition Commission of India (CCI) considered bouquet of banking services to the customers engaged in gem and jewellery business as a relevant product market.
IndusInd Bank has 801 branches in India while RBS has 10 branches, according to the CCI order.
"Post combination, the market share of the acquirer would not be significant so as to cause an appreciable adverse effect on competition in the relevant market.
"In this regard, it is also observed that larger players such as State Bank of India, Bank of India, ICICI Bank and Union Bank of India are also present in the gem and jewellery segment of banking," the order, dated June 15 and released today, said.
With respect to RBS' gems and jewellery customers who do not wish to migrate to IndusInd Bank, the acquirer has informed that such clients would continue to be with RBS.
"In this regard, it has also been stated by the acquirer that if such customers wish to migrate to other banks due to the seller exiting from the business of providing banking services to gem and jewellery customers, no charges and/or penalty will be levied on these customers on account of migration to other banks," the order said.
