Barclays to shut a third of its branches in India

At a time when most foreign banks in the country are demanding for more branches, British lender Barclays has decided to close three out of its nine bank branches in India. The move comes after its decision to exit retail banking business here, sources familiar with the development said.

The foreign bank will shut its branches in Ahmednagar, Rajahmundry, and Junagarh. The bank will, however, retain the remaining six branches to carry out its corporate banking operations.

A spokesperson of Barclays India also confirmed the development.

Earlier Barclays Finance, the non-banking finance arm of Barclays in India, had closed majority of its branches in the country as the foreign lender was no longer offering retail loans to its customers.

Barclays, which sold its India credit cards business to Standard Chartered Bank and Kotak Mahindra Bank last year, is currently negotiating with bidders for selling its close to Rs 3,200 crore retail assets business here.

However, sources indicate that bank is yet to receive a "right price" for these assets. In India, the bank now plans to focus on more profitable businesses like wealth management and investment banking.