20.7 C
New Delhi
HomeBusinessRetaining Credit Suisse AG's private banking unit in India

Retaining Credit Suisse AG’s private banking unit in India

The deal inked between UBS and Credit Suisse last month includes $108 billion in liquidity assistance for UBS and Credit Suisse from the Swiss central bank.

Swiss banking goliath UBS is reportedly thinking to retain Credit Suisse AG’s private banking unit in India. It will also make a possible return to the market. This comes after UBS agreed to buy rival Credit Suisse for $3.23 billion in stock last month. And it assumes up to $5.4 billion in losses. 

According to a report in Bloomberg, Iqbal Khan, the global head of wealth management at UBS, met with the group executives including Puneet Matta, the local lender’s wealth head. Khan then reportedly told the Suisse’s staff that retaining the wealth business in India is necessary. 

Khan was at Credit Suisse before he left for UBS in 2019. UBS had left India by 2014, exiting the country’s private-wealth market. The return will pave the way for UBS into the market as the number of billionaires in India continues to rise. 

As per the report, the merger would see large parts of Credit Suisse’s investment bank wind down. The lender has just over 40 wealth management employees and around 7,000 overall employees in the country. 

The deal inked between UBS and Credit Suisse last month includes $108 billion in liquidity assistance. The federal government is providing a loss guarantee of a maximum of 9 billion Swiss francs. And they are doing this to enable UBS to take over the Suisse group. 

This will be activated if losses are actually incurred on this portfolio. In that eventuality, UBS would assume the first 5 billion francs, the federal government the next 9 billion francs, and UBS would assume any further losses, the government said.

Also read: Tupperware share prices drop after claims of going out of business



Please enter your comment!
Please enter your name here

- Advertisment -

Most Popular