According to reports from London yesterday, embattled RBS is looking to sell its Asian units, mainly assets acquired when it bought the Dutch financial group in 2007. It is also said to be keen to sell Charter One, its United States business banking asset.

Citing an unnamed source, The Independent newspaper said RBS had sounded out British rival Standard Chartered Bank (StanChart) and Australia's ANZ group about buying its Asian operations, including its assets in India.

It also said that while RBS may sell its retail banking operations in Asia, it will still want to retain licences and a wholesale banking foothold in key centres like Hong Kong, Singapore, Japan and India.

Separately, citing sources with direct knowledge of the matter, Reuters yesterday reported that Morgan Stanley has been hired to explore the potential sale.

Bloomberg also reported that RBS may be selling its Australian assets and has approached the Commonwealth Bank of Australia on the sale.

The reports come just a day after Prime Minister Lee Hsien Loong urged qualifying full banks (QFB) in Singapore to stick with clients through the financial storm.

'Having grown their domestic market franchise, QFBs should continue to take a long-term commercial view, stay with their clients and ride through the business cycle with them,' said Mr Lee, who was guest of honour at StanChart's 150th anniversary dinner on Thursday.

Just last month, RBS said it would write down about £20 billion (S$44 billion) for acquisitions made last year - mainly ABN Amro and Charter One.

An RBS spokesman in Hong Kong told The Straits Times yesterday that the bank's ongoing strategic review of its business would be completed only by the end of the second quarter.

Read the full report in Saturday's edition of The Straits Times.