No more loans in India, says Barclays
Banking giant Barclays is to stop giving retail loans in India, a decision which those involved in the plans say could result in 200 job cuts back in the UK.
Banking giant Barclays is to stop giving retail loans in India, a decision which those involved in the plans say could result in 200 job cuts back in the UK.
The move is part of Barclay's shift in focus to its deposit, wealth management, investment and corporate banking business in South Asia.
In a statement the firm said: "As part of Barclays decision to consolidate and build a sustained profitable Indian business based on our competitive strengths, it has decided to not book new retail loans in India but maintain its deposit business," the bank said in an official statement.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Barclays is not alone in taking this step, with Noruma Holdings having cut around seven members of staff on its Indian investment banking team. Analysts are saying that scalebacks across Indian operations are highly likely.
Barclays, which has lost over 29% on its share price over the past year, has already terminated one third of its client relations team earlier this year as part of a merger of its commercial and investment banking divisions.
Banks have struggled to contend with the enormous retail web of Indian banks, which includes the State Bank of India and ICICI Bank.
On Wednesday, one source, who has direct knowledge of the matter, told Reuters that Barclays planned to sell its retail loan book of more than $580m in the next six months to one year.
Barclays' share price fell 1.28% to 184.95p by 14:37.
NR
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.
-
How you could boost household income by £16k tax-free – five legal loopholes
Knowing your way around the tax system means you can take advantages of ways to keep more of your income tax-free
-
HSBC UK slashes financial advice fee to 1% for Premier customers – how does it compare to other £100k accounts?
Natwest and Lloyds offer competing accounts with a range of perks from cheaper mortgages to cashback to entice those with £100,000 or more in savings and investments. Is HSBC’s reduced fee worth considering?