The reputed United Kingdom based bank, Standard Chartered, which mainly
focuses the market of the Asian continent, may acquire Morgan India’s wealth
management business. It is in high level talks, and the takeover is highly
likely in near future.
Morgan Stanley is in the process to shut down some of its businesses to
reduce its overall head count. It wants to boost up the revenue by increasing
profitability of the company. So it has decided to exit the wealth management
business too, and Standard Chartered has shown interest to acquire the said
business.
A reliable source, who
is very much familiar with the overall matter, said, “Standard
Chartered is the frontrunner to acquire the business. Many players have
reviewed the business, but there is no certainty the deal will go through. The
talks are still on,"
A spokesperson of the mentioned bank has declined to comment on the
matter. The reason of his denial may be that the deal or the process of
acquisition has not been completed yet.
Morgan Stanley is having a tough time in its overall business in the
country. The main reason may be the sudden increase of various extra rules and
regulations, which are enacted by the government of India or the Reserve Bank
of India (RBI). Morgan Stanley needs more capital in order to survive and
that’s why it is in the process of closing down some of its businesses. It is
also terminating some its employees to reduce the expenditure.
Morgan
Stanley has already surrendered its banking license, and it has been axing jobs
for quite a few times now. In fact it has already had terminated thirteen
employees from its security business, which mainly includes investment banking
and debt management.
It has to be mentioned here that more than 400 people are working as an
employee of Morgan Stanley in its various businesses in India. You may also
read India Post to joinbanking business in India here.
Eventually it had already sold the Grindlay's Mutual Fund business to
IDFC, and now it might be feeling a sigh of regret for doing that. As a matter
of fact Standard Chartered are now looking to expand its business in India
market, as it is now seeing the market of India as one of its growth market.
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