Barclays to scale back operations in India, elsewhere
28 Dec 2009
British banking giant Barclays is curtailing international expansion plans to merit further investment. Its new head of retail banking Anthony Jenkins has reportedly told his executives that the bank would expand only in markets where it has considerable presence.
Indian operations will be particularly hit by the decision, according to a report in The Times. The bank has decided to scale back its operations and future plans in India after curbs on foreign ownership made it difficult for it to expand.
"Jenkins, who took over as the global head of retail last month, has told his senior executives that their businesses must be of a meaningful size to merit further investment," The Times said.
Executives in a number of other countries are being ordered to drop plans for general expansion and instead focus on niche areas. For example, the bank's Russian business, which was acquired in 2008, has been advised to concentrate on corporate and small-business lending.
Quoting Jenkins the daily said, "Barclays will expand only in countries where it is one of the top 10 banks or has a clear route to become one." Barclays operates in more than 50 countries, from Ghana, Rwanda and Zimbabwe to Luxembourg, Singapore and the Seychelles.
