Arete Financial Partners

    Buy Side Due Diligence on Retail Banking & Wealth Portfolio of MNC Bank

    The HQ of a European Bank in India invited limited bids for its retail banking business in India.

    Arete was commission by the buyer to evaluate the suitability of the portfolio given that the potential buying bank was listed. The principal mandated Arete to provide end to end services including

    Evaluation Approach

    2.5 Months

    Time taken to complete Initial due diligence including financial impact

    45 Days

    Time taken to do confirmatory due diligence

    Approach & Key Challenges

    Challenges

    • The seller had complex operations in India which were spread across its banking entity as well as an NBFC.
    • This distribution of business across two entities posed complexity in acquisition, regulatory compliance and resources.
    • Lastly, the potential buyer did not have a wealth management offering and platform.

    Approach

    • Arete conducted an end-to-end due diligence including various simulation of client / people attrition due to inability to integrate within banking.
    • A regulatory road map including license requirements was contructed