SOURCE :Reuters / Brussels May 21, 2010, 12:13 IST
Belgian banking and insurance group KBC said, on Friday, it had sold its private banking arm KBL to Indian family-owned investment firm Hinduja for 1.35 billion euros ($1.68 billion).
KBL European Private Bankers was put up for sale in the aftermath of the financial crisis, when KBC pledged the sale of private banking and a string of divestments in return for 7 billion euros it received in state aid.
"With this divestment, we are releasing a significant amount of capital and further strengthening the KBC group, with its focus on its core bancassurance expertise and markets, and with its reduced risk-profile," said Chief Executive Jan Vanhevel.
The deal is subject to regulatory approval and is expected to close in the third quarter of 2010, KBC said in a statement.
It resulted in a 1 per cent increase in KBC's core Tier 1 ratio and a pro forma core Tier 1 ratio of 10.4 per cent, KBC said.
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