UBS to quit wealth management in India

Published:  26 Jun at 9 AM UBS has become the second major bank in recent weeks to announce that it will be pulling its commercial banking and wealth management operations out of India. The Swiss bank’s global strategy appears to involve concentrating more on core strengths in active markets.

In its annual report UBS said it wants to focus its worldwide business on less capital intensive activities in an effort to reduce overheads. However according to a UBS Hong Kong spokesman the Zurich bank will continue with core operations in India including equities and investment banking.

Media reports suggest that the winding down of the commercial banking and wealth management arms will take place over the next two years and is likely to involve the loss of around 50 jobs.

In May Morgan Stanley confirmed that it would be selling its wealth management business in India to Standard Chartered. UBS began commercial banking operations on the subcontinent in 2010 after the Reserve bank of India awarded it scheduled bank status in March 2009.

The bank operated out of Mumbai and mainly provided commercial borrowings, fixed income service and foreign exchange to wealthy individuals and large companies.