Royal Bank of Scotland cuts 443 jobs in the UK related to business loans, shifting many of the items to India, reports BBC.
State Bank said that move jobs which help to deal with its debts to small businesses as part of its efforts to cut costs. But the bank added that employees in the UK will continue to carry out work related to making contact with customers.
Unions claimed that British workers and taxpayers will lose from this move. In their words by moving jobs to India RBS will carry out its work more cheaply to Britain.
RBS, 73% of which are still owned by the government after saving its 45 billion pounds in 2008, said that credit decisions will continue to be taken in the UK.
“As we become more streamlined, fewer banks make some changes in the way we serve our clients,” said spokesman creditor. “Unfortunately, these changes will lead to the elimination of 443 jobs in the UK.
The bank said it will support employees affected by “disappointing news”, including direct them to new positions where possible.
All this happens just weeks after RBS said it would cut 250 jobs in information technology in the UK and will direct dozens of such officials to India.
RBC said earlier this year that 2017 will probably be the last year that will mark the loss as it is getting closer to closing the darkest chapter in the 290-year history.
The lender said it will update on progress in negotiations with the US Department of Justice, said Reuters. In January, RBS has set aside more reserves to 3.1 billion pounds in preparation for settling claims. Some analysts say the total amount of settling claims may reach 9 billion pounds. The ratio of the basic tier of RBS rose to 14.1 percent from 13.4 percent a year ago.
Resolution of the case is one of two major remaining barriers to the bank to achieve the goal to turn a profit in 2018. Another obstacle is an obligation that RBS has within the European requirements for state aid. The bank will have to sell its subsidiary Williams & Glyn in exchange for bailout.
Instead sale, the government filed in February on the European Commission for approval of a new plan that RBS will require measures to boost the competitiveness of smaller British banks.