Fair trade regulator CCI has approved the proposed transfer of HSBC Oman's banking business in India to Qatar-based Doha Bank, saying the deal will not adversely impact competition in the country.
HSBC Oman is part of HSBC Holdings which has interests in banking companies worldwide, including in India.
In an order released today, the Competition Commission of India (CCI) said "the proposed combination is not likely to have an appreciable adverse effect on competition in India".
The Commission noted that even though Reserve Bank of India (RBI) has granted license to Doha Bank to operate a branch in Mumbai, "the bank is yet to commence its services in India".
"Further, none of the parties to combination is stated to be engaged in any activity that is vertically related to the activity carried on by the other party," the watchdog said.
Doha Bank is one of the commercial banks in Qatar and is engaged in retail banking, investment and international banking, among others.
HSBC Oman is also into retail and commercial banking. The entity provides services in India through its branches at Mumbai and Kochi, the order said.