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.

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.

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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