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:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Retaining talent, reviving company

REUTERS SHOWCASE

Mars Mission

Mars Mission

India triumphs in maiden Mars mission  Full Article 

Asian Markets

Asian Markets

Asia stocks hit by Syria air strikes  Full Article 

Pharma Sector

Pharma Sector

India withdraws regulator's power to cap non-essential drug prices  Full Article 

New Plants

New Plants

Canadian auto parts maker Magna to open two new plants in Gujarat.  Full Article 

Reduced Package

Reduced Package

Oracle's Ellison got $67.3 million as CEO in 2014  Full Article 

Breaking Up

Breaking Up

Philips to split off lighting business, form separate company.  Full Article 

Reuters India Mobile

Reuters India Mobile

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