Morgan Stanley to let India banking licence lapse

MUMBAI Sat Jan 26, 2013 7:38pm IST

The headquarters of Morgan Stanley is pictured in New York June 1, 2012. REUTERS/Eric Thayer/Files

The headquarters of Morgan Stanley is pictured in New York June 1, 2012.

Credit: Reuters/Eric Thayer/Files

Related Topics

MUMBAI (Reuters) - Morgan Stanley intends to allow its banking licence in India to lapse as part of its changed business strategy, the Economic Times newspaper reported on Saturday.

However, the Wall Street bank will continue to run its investment banking business and stay registered as a non-banking finance company with the central Reserve Bank of India, the newspaper reported, citing an unnamed senior banker.

Morgan Stanley declined to comment on the report.

In March 2012, it received the licence to set up a bank in the country.

"It is now planning to let the licence lapse as it does not want to tie up capital and other resources on account of a review of its strategy," a senior banker with knowledge of the development told the newspaper.

The licence would enable Morgan Stanley to expand its offerings to corporate banking and foreign exchange from its current services such as advising clients on takeovers.

Last November, sources have told Reuters that Morgan Stanley had launched the sale of its India private wealth management unit, which manages about $1 billion including loans, after entering the highly fragmented and competitive market just four years earlier.

(Reporting by Indulal PM; editing by Jason Neely)

FILED UNDER:
  • Most Popular
  • Most Shared

DEFENCE

REUTERS SHOWCASE

Canonisation

Canonisation

Pope declares sainthood of two Indians, four Italians.  Full Article 

Stake Sale Strike

Stake Sale Strike

Coal India trade unions call off strike in victory for Modi.  Full Article 

Markets Weekahead

Markets Weekahead

Ride the bull with a finger on the ejector button.  Full Article 

Arms Purchase

Arms Purchase

India approves $2.6 bln mounted gun purchase - official.  Full Article 

Interview with Bulgari CEO

Interview: Bulgari CEO

Bulgari CEO: we shouldn’t have left India so we’re back  Full Article 

Formula One

Formula One

Hamilton takes second F1 title in style.  Full Article 

Available For Remake

Available For Remake

Bollywood finally wants to pay the price for remakes  Full Article 

Davis Cup

Davis Cup

Vintage Federer seals first Davis Cup for Switzerland.  Full Article 

Movie Review

Movie Review

"Happy Ending" is old wine in an older bottle  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage