MUMBAI Jan 26 Morgan Stanley intends to
allow its banking licence in India to lapse as part of its
changed business strategy, the Economic Times newspaper reported
However, the Wall Street bank will continue to run its
investment banking business and stay registered as a non-banking
finance company with the central Reserve Bank of India, the
newspaper reported, citing an unnamed senior banker.
Morgan Stanley declined to comment on the report.
In March 2012, it received the licence to set up a bank in
"It is now planning to let the licence lapse as it does not
want to tie up capital and other resources on account of a
review of its strategy," a senior banker with knowledge of the
development told the newspaper.
The licence would enable Morgan Stanley to expand its
offerings to corporate banking and foreign exchange from its
current services such as advising clients on takeovers.
Last November, sources have told Reuters that Morgan Stanley
had launched the sale of its India private wealth management
unit, which manages about $1 billion including loans, after
entering the highly fragmented and competitive market just four