 "RBI permits UBS-owned Credit Suisse to keep Indian banking license")
The Reserve Bank of India (RBI) has granted permission to UBS, the owner of Credit Suisse, to retain the banking license for operations in India. This decision comes as UBS intends to reduce more than half of Credit Suisse's workforce. Additionally, UBS has yet to determine the future of the Swiss domestic business acquired from Credit Suisse. The report was first released by ET NOW on Wednesday.
To facilitate the integration of Credit Suisse, UBS has enlisted the help of Tom Wipf from Morgan Stanley, who will play a key role in the tie-up.
UBS is currently managing the integration of Credit Suisse Group AG's business following the emergency takeover. Reportedly, UBS also plans to reduce the number of employees at Credit Suisse Credit Suisse AG’s 45,000-strong workforce by more than half.
As previously reported by Business Standard, staffers have been told that there may be up to three rounds of cuts this year alone. The first is expected by the end of July and the following rounds are tentatively planned for September and October, respectively.
According to the report, an internal memo circulated after the official closure of the takeover, UBS announced changes to the executive board of Credit Suisse AG. This development marks the end of Credit Suisse's independent existence of 167 years and paves the way for UBS to embark on the intricate process of integrating its former competitor.
The acquisition, which was agreed upon in March through an emergency rescue deal brokered by the Swiss government, positions UBS to potentially gain billions of dollars while also burdening the bank with possible markdowns of Credit Suisse assets, along with legal and regulatory expenses.
More From This Section
The finalisation of the deal follows UBS's successful negotiations with the Swiss government, securing a guarantee of nine billion Swiss francs ($10 billion) against potential losses on Credit Suisse assets.
Furthermore, UBS is yet to determine the fate of the Swiss domestic business obtained from Credit Suisse. This specific segment of the acquired bank had consistently generated profits amidst the broader turmoil and played a leading role in financing Swiss companies and households.
UBS has also announced its intention to develop comprehensive integration plans for each business unit, as well as a clear strategy for winding down specific non-core activities by the fourth quarter.