CCI clears DBS-RBS' deal on corporate loan business
The Dollar Business Bureau
Competition Commission of India (CCI), the fair trade regulatory body, has given its nod to the proposal of the Development Bank of Singapore (DBS) to buy corporate loans business division from Royal Bank of Scotland (RBS) in the Indian market.
DBS India would purchase specific corporate loans of RBS NV India's branches. In March 2016, a framework agreement on portfolio sale was agreed upon between the two entities.
The fair trade regulator, while signing the deal, mentioned that this agreement is not likely to harm competition in India.
"On the basis of proposal submitted by both the parties, it was found out that they face considerable competitive constraints from a lot of large players, in public as well as private sector, offering a variety of banking services such as corporate loans," CCI said.
DBS and RBS, both offer several financial-related services in the field of corporate and retail banking in India.
Last month, CCI said that RBS India is departing from the corporate loans sector, through the recommended combination. At present, parties are involved in the corporate loans division of India.
CCI has been established by the Government of India in 2003, with an aim to abolish practices having ill effects on competition, encourage and sustain competition, safeguard the interests of customers and make sure there is freedom of trade in the Indian markets.