Barclays to stop lending in India: Report
08 December 2011
Britain's Barclays Plc will withdraw from all lending in India to focus on wealth management, corporate and investment banking, a move that would result in a loss of 150 jobs, Reuters reported, citing a source.
The report said that in its bid to revive profitability, Barclays merged its Indian commercial and investment banking arms four months back, cutting 50 jobs and was also selling its credit card business in the country.
With the latest job cuts the bank would let go around 17 per cent of its 850 remaining employees in India, according to Reuters.
Citing an unnamed source, the report said Barclays planned to sell its retail loan book of more than $580 million in the next six months to one yearas the bank's retail loan book quality was very good and the bank should not have a problem in finding a buyer.
It further cited the source as saying Barclays realised that it did not have the competitive advantage to build up a strong retail business in India and the sale of the credit card business and the retail loan book would help it focus on segments that were profitable.
According to the report Standard Chartered would buy 170,000 credit card accounts from Barclays, which had around 300,000 card customers in India, at a discount to book value.