Royal Bank of Scotland Looks To Sell Pakistan Operations: Easy Bourse

KARACHI -(Dow Jones)- The Royal Bank of Scotland Group PLC (RBS) - which Thursday announced a major restructuring of the company - said in a separate statement that it is looking at the possibility of selling its wholly-owned Pakistan unit because of financial difficulties caused by the global economic meltdown.
"RBS has announced its intention to explore new ownership for the retail and commercial operations in Pakistan," the bank said in a statement to the Karachi Stock Exchange.
"We are unable to confirm the details surrounding the potential sale but we can confirm that it has generated considerable interest from potential purchasers, reinforcing the value and potential of the business in Pakistan," RBS Chief Executive Stephen Hester said in the statement.
The statement said also that the company is unable to invest in its Pakistan business due to capital constraints and because of the need to reduce the size of its balance sheet.
No financial details were given.
On Sept. 30, 2008, RBS' assets in Pakistan totaled PKR112 billion ($1.4 billion) while deposits were PKR86 billion and advances PKR70 billion. It has around 80 branches across the country.

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