Download Unicorn Signals App

Powered By EquityPandit
 Signals, Powered By  EquityPandit

Indian Client Services won’t be affected after UBS acquisition, says Credit Suisse Spokesperson

Credit Suisse has confirmed that its merger with UBS will not affect services to its Indian clients, as the bank is focused on ensuring a smooth transition. 

Credit Suisse provides wealth management, investment banking, and brokerage services in India, with offices in Mumbai, Pune, and Gurgaon. The bank has a deposit base of INR 2,800 crore as of March 2022, with INR 947 crore in loans and advances, INR 804 crore in total income, and INR 303 crore in net profit.

Last week, UBS, Switzerland’s largest banking group, agreed to acquire the troubled Credit Suisse Group in a government-brokered deal for $3.2 billion. Credit Suisse will write down around $17 billion worth of risky additional tier-1 bonds as part of the all-share deal. The deal values Credit Suisse at around 60% lower than its previous closing price on March 17, when the lender was valued at about $8 billion.

Analysts predict that the Indian operations of Credit Suisse will likely continue under the UBS brand, although some consolidation in the redundant corporate office holders is expected. The acquisition may also mark UBS’ re-entry into India. UBS left India in January 2016 by surrendering its licence after operating there for nearly a decade. UBS’s decision to leave the Indian banking industry was part of its global plan to concentrate on its strengths.

Some analysts believe the merger should be relatively smooth, although senior management could move to other entities, possibly domestic. There may also be some restructuring in the investment banking business of India. However, Credit Suisse’s long-standing record of doing wrong things, going back to 1997, has made some sceptical of the deal’s success. Despite this, Credit Suisse has assured its clients that it focuses on ensuring a seamless experience.

Get Daily Prediction & Stocks Tips On Your Mobile