UBS India, the domestic franchise of Swiss banking major UBS Group which last month surrendered its banking licence, has started laying off around 50 people, who are affected by the decision.
When asked, a UBS spokesman said: “Around 50 redundancies (confined to the employees of the bank branch) are envisaged between now and the end of the second quarter of 2015.”
On the severance package being offered to the employees who are to lose jobs, the spokesman told PTI today that “the group considers such information confidential.”
Whether the bank is offering the affected employees any redeployment options within the group’s other businesses here, he said, “the bank is actively seeking redeployment opportunities for the affected employees wherever possible.”
On June 21, UBS India had decided to surrender its banking licence to the RBI after sitting over it since 2008, as part of the group’s “capital light strategy” and to reposition the balance sheet, with a view to sharpen its focus on the core businesses in equities and corporate client solutions.
According to sources, UBS started distributing letters of termination last Friday and is said to be offering a compensation package of one-month’s pay for every year of service completed, which is the practice amongst investment bankers in the country.
UBS India has just one branch in the country, based in the megapolis.
UBS is the third foreign bank after the Wall Street giants Morgan Stanley and Goldman to surrender their banking licences in the country in recent past.
“UBS is in the process of trimming its operations here and has moved the RBI in this direction. The move is a part of its global plan to be present in the capital light businesses to conserve capital and quit capital intensive businesses,” had said while deciding to surrender its banking licence here.
Source: The Economic Times