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| Barclays to realign India biz, 25-30 job cuts likely |
| BS Reporter / Mumbai Jul 19, 2011, 00:35 IST |
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Barclays Bank has decided to combine its client relationship teams at Barclays Corporate and Barclays Capital in India. The move would result in around 25-30 job cuts.
Karan Bhagat, country head and managing director, Barclays Corporate (India), would be shifted from his current role. It was not immediately known whether he would leave the bank or move back to the bank’s global headquarters in the United Kingdom.
Jaideep Khanna would now lead the bank’s corporate and investment banking teams in India. “Today’s announcement has no impact on Barclays’ retail business in India. Barclays took actions earlier in 2011 to build a sustainable and profitable retail banking franchise in India, redesigning its distribution model and streamlining its footprint...There is no reason to believe the speculative statements on cost escalation, subdued growth, and recoveries,” said Subhayu Mishra, head of corporate communications, Barclays Bank. He added the bank was committed to grow its retail business in India and that strategy remained unchanged despite the realignment.
“As a result of today’s announcement, there will, regrettably, be a small reduction in the number of corporate coverage and product bankers at Barclays. However, we assure you that the people impact is being managed to be kept to the minimum. Those affected by redundancy would receive a fair package in the context of the market,” Mishra said, without specifying the details.
The realignment of roles would see Suvrat Saigal, consumer banking director, Barclays Bank (India), reporting only to his functional head and global chief retail officer, Gary Duggan. Saigal earlier reported to both Bhagat and Duggan.
The Reserve Bank of India (RBI), in a notification in May, had expressed concern on business heads of foreign banks reporting directly to their functional heads based abroad. “In the recent past, there have been concerns about the adequacy of regulatory compliance by foreign banks in India and it is felt this is on account of business heads reporting directly and being answerable to their functional heads located overseas and not to the chief executive officer of Indian operations,” RBI had said.
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