After UBS merger, Credit Suisse planning layoffs in India back offices

Credit Suisse maintains back offices with 7,000 employees in three Indian cities. After its recent merger with UBS, these offices may see layoffs, according to a report published in the Financial Express (FE).

The development is said to be part of the rationalisation of staff at Credit Suisse, one of the most prominent banks in global banking history. Credit Suisse offers wealth management, investment banking, and brokerage services in India.

Credit Suisse's equity strategists Neelkanth Mishra and Ashish Gupta recently quit and joined the Axis Bank group. These positions are likely to be filled by USB analysts.

UBS Chairman Colm Kelleher was quoted in the report as saying, "Let me be very specific on this. UBS intends to downsize Credit Suisse’s investment banking business and align it with our conservative risk culture." He was speaking at a press conference announcing the deal.

The report added that foreign banks have a relatively smaller presence in the Indian banking space, with a 6 per cent share in total assets, 4 per cent in loans, and 5 per cent in deposits. Nevertheless, they retain capital, maintain liquidity, and make similar annual report disclosures as their Indian counterparts. The top five foreign banks in India by their asset values are HSBC, Citibank (which has now sold its consumer business to Axis), Standard Chartered, Deutsche Bank, and JP Morgan.