RBS eyeing Ulster Bank cash injection

The injection of private equity funds into Ulster Bank and a merger with another bank, most likely Permanent TSB, are part of a plan being considered by Royal Bank of Scotland.

According to a report in the Sunday Times newspaper, Royal Bank of Scotland is in talks with the private equity firm, Warburg Pincus, to inject new cash into its wholly owned subsidiary, Ulster Bank.

Ulster Bank would then be merged with another bank, most likely Permanent TSB, to create a third banking force in the Irish market.