UBS India begins laying off staff after exit decision

10 July 2013

UBS India, the franchise of the Swiss-based bank, has begun removing some of its employees from its commercial banking division, two weeks after the institution relinquished its banking licence.

Some 50 people have been affected by the decision to cut back staff numbers and they will leave the firm before the second quarter of 2015.

UBS only has one branch in India and decided on 21 June to surrender its licence to the Reserve Bank of India as part of the group's overall capital restructuring policy and to improve its balance sheet.

The institution is the third foreign bank after Morgan Stanley and Goldman Sachs previously gave up their licences in the country.

Sources suggest UBS started distributing letters of termination last week and is said to be offering a package worth one-month's pay for every year of service completed. This is the standard practice amongst investment bankers in India.

UBS has been embroiled in several scandals recently, including its indictment in the Libor rigging practices by the Financial Services Authority.

By Asim Shah

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