HSBC Holdings Plc is set to acquire the Indian, Chinese and Malaysian assets of troubled British banking giant Royal Bank of Scotland Group Plc, with both banks having signed a deal, say reports in the Indian media.

HSBC entered the bidding race for select Asian assets of RBS in October after talks between Standard Chartered Bank Plc and RBS broke down over differences on the valuation of assets.

According to an RBS official in India, both the banks have already signed the deal and the actual acquisition depends on regulatory approvals in three countries.

RBS has already approached the Indian central bank for approval. The key to the success of the Indian part of the acquisition is the Reserve Bank of India (RBI) clearance for transfer of RBS branch licences to HSBC.

RBS has 31 branches in India and employs 10,000 people, following its 2007 acquisition of the Asian operations of ABN Amro Bank NV.

ABN Amro continues to conduct business in India under its original name despite the RBS takeover. That acquisition was made through a consortium, along with Fortis group of the UK and Banco Santander SA of Spain.

HSBC, which had an asset base of Rs94,620 crore in March, operates through 47 branches across India. It has three more branch licences granted by RBI.

RBS is selling businesses designated as non-core in select markets to raise funds even though it will continue and grow the corporate and wholesale banking activities of ABN Amro.

In August, Australia's fourth-biggest bank, the Australia and New Zealand Banking Group Ltd (ANZ Bank) has agreed to buy six Asian units of RBS retail and commercial banking operations including Taiwan, Singapore, Indonesia and Hong Kong for $550 million (See: ANZ acquires RBS's Asian assets for $550 million).

It also acquired the onshore global banking and markets and global transaction services operations in the Philippines, Vietnam and Taiwan.

Speculations was rife at the time that ANZ would buy the Indian assets of RBS (See: ">ANZ plans returning to India by acquiring RBS assets: reports).  was HSBC India's net profit for the fiscal year ended March 2009 rose 8 per cent to Rs1,291 crore.

RBS, based in Edinburgh, is selling businesses in up to 36 of the 54 countries in which it operates, after posting the biggest loss in British corporate history last year, which ends up in the British government bail-out.