Thursday, 28 February 2013

Standard Chartered May Acquire Wealth Business of Morgan’s India



Standard Chartered may acquire Morgan India’s wealth management business.
                      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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