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RNS Number : 7255O

Royal Bank of Scotland Group PLC

02 July 2010



The Royal Bank of Scotland Group plc ("RBS") announces sale of Indian Retail &

Commercial banking operations to HSBC



2nd July 2010



The Royal Bank of Scotland Group plc ("RBS") announces that it has entered into

an agreement with The Hongkong and Shanghai Banking Corporation Limited ("HSBC")

to sell its Retail & Commercial banking business in India, subject to regulatory

approvals.



The sale will comprise a premium of up to GBP63million, (US$95million) over

tangible net asset value of the businesses being sold on closing, subject to

certain closing adjustments.  As at 31st March 2010 these businesses comprised

gross assets of GBP1.2bn (US$1.8bn) and the RWAs GBP0.7bn (US$1.1bn).  The

transaction will be effected by way of an asset and liability transfer.

Completion, subject to regulatory approvals, is expected in the first half of

2011.



Bruce Van Saun, Group Chief Financial Officer for RBS said: "We have made

excellent progress in recent months with our disposal of non-core assets,

resulting in over 20 businesses sold so far.  I am delighted that our Retail &

Commercial banking colleagues and customers in India will now become part of

HSBC, one of the largest and most successful banking groups globally."



As at 31st March 2010 the Retail & Commercial banking business comprised c1.1

million customer relationships.  There are currently just over 1,800 staff

employed by the business who will transfer to HSBC upon deal completion.



RBS in India

Following the exit of its Retail & Commercial businesses in India, RBS will

continue to retain a strong footprint on the sub-continent as one of the core

markets for its Global Banking & Markets (GBM), Global Transaction Services

(GTS) business and RBS Private Banking.  It employs over 280 people.  RBS is a

leading global wholesale and investment bank, transaction and private bank in

Asia Pacific with a significant presence in 11 markets, including India.



India is also one of four key locations globally for Business Services hubs with

centres in Mumbai, Delhi and Chennai employing over 8,000 people.  Combined,

these operations make India one of the largest employment bases for RBS.



For Further Information Contact:

Richard O'Connor

Investor Relations

+44 (0) 20 7672 1758



Group Media Centre

Tel: +44 (0) 131 523 4205



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