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

Border Security Force (BSF) soldiers ride their camels as they rehearse for the "Beating the Retreat" ceremony in New Delhi January 27, 2015. REUTERS/Ahmad Masood

"Beating The Retreat" Rehearsals

Rehearsals are on for "Beating the Retreat" ceremony which symbolises retreat after a day on the battlefield, and marks the official end of the Republic Day celebrations.  Slideshow 

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:
Photo

After wave of QE, onus shifts to leaders to boost economy

DAVOS, Switzerland - Central banks have done their best to rescue the world economy by printing money and politicians must now act fast to enact structural reforms and pro-investment policies to boost growth, central bankers said on Saturday.

Reuters Showcase

Vodafone Ruling

Vodafone Ruling

Government will not appeal Vodafone tax ruling   Full Article 

Indian Railways

Indian Railways

Private refiners compete with state firm to sell diesel to railways   Full Article 

Ranbaxy Results

Ranbaxy Results

Dec-quarter net loss widens on forex loss  Full Article 

Market Eye

Market Eye

Sensex, Nifty retreat from record highs on profit-taking.  Full Article 

Tech Talk

Tech Talk

Apple takes high road in China smartphone standoff with Xiaomi.  Full Article 

Business Strategy

Business Strategy

Uber scraps commissions for its New Delhi taxis.  Full Article 

Job Cuts

Job Cuts

Sony to cut 1,000 jobs in smartphone business - sources.  Full Article 

Reuters India Mobile

Reuters India Mobile

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