The Hinduja Group has informed that will pay USD 1.69 billion to purchase KBC's private bank. The private banking arm of Belgium's KBC is expected to join financial services arm of Hinduja Group. The deal between the Indian family-owned conglomerate and the Belgian banking and insurance group has been finalized and it has been announced to the media.

KBL European Private Bankers belongs to KBC and was put up for sale during the period of global economic downturn and recession. At the time of financial crisis, the group had promised for divestments in exchange for 7 billion in state aid.

After the Hinduja buy out, KBC has informed that this deal is going to provide the bank larger access to the fast-growing Middle-East, Indian and Asian markets. It has become easy for the bank to hit various emerging markets.

However, the KBL acquisition is considered to be one of Europe's largest onshore private banking units. Experts believe that it is going to strengthen Hinduja's grip in the European market. The banking unit has 47 billion of assets under management as well.