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:

REUTERS SHOWCASE

WTO Trade Deal

WTO Trade Deal

WTO clinches first global trade deal in its history  Full Article 

Kashmir Attack

Kashmir Attack

Ten dead in Kashmir's worst militant attack in more than a year  Read 

OPEC Meeting

OPEC Meeting

Saudis block OPEC output cut, oil price sinks further.  Full Article 

GDP, RBI Preview

GDP, RBI Preview

GDP growth set to weaken, business wants reforms more than rate cut  Full Article | Related Story 

Social Media

Social Media

Twitter to start tracking users' mobile apps  Full Article 

Jaitley to Rajan

Jaitley to Rajan

Jaitley likely to meet Rajan on Monday to urge rate cut  Full Article 

Banking Sector

Banking Sector

India moves to allow more businesses to offer basic financial services.  Full Article 

Forever21 in India

Forever21 in India

Forever21 sets sights on Indian cities, but please hold the hot pants  Full Article 

Japan Economy

Japan Economy

Japan inflation slows in October, output and spending show signs of recovery  Full Article 

Reuters India Mobile

Reuters India Mobile

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