After the merger of UBS and Credit Suisse, perhaps so many employees will not be needed, so retrenchment is necessary.
UBS-Credit Suisse Merger: UBS Group has recently bought Credit Suisse Bank. UBS and credit suisse group Due to the merger together, there can be a crisis on the jobs of about 14000 people. Due to this, there are signs of danger for Indian companies as well. Because UBS will try to keep only the best performing employees in Credit Suisse. After the merger, UBS can lay off a large number of employees to protect itself.
A banker familiar with the operations of the two banks in India says that after the merger of UBS and Credit Suisse, there may not be the need for so many employees, so retrenchment is necessary. The big question now is whether UBS will continue to operate Credit Suisse, or reduce staff to avoid losses. At present, there are indications of 14000 people losing their jobs.
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UBS operating smaller branches in India
UBS operates small bank branches in India, it closed its only branch in the country in 2013. After this, cash equity business was again started and Foreign Institutional Investors (FIIs) were allowed to transact in the country through Participatory Notes. Let us tell you that Credit Suisse still has a branch license in India and does a wide range of business including wealth management, investment banking and brokerage services. It is active as the largest promoter financing against shares.
The deal will be completed only by the end of 2023
While both global banks have not yet detailed their plans regarding business outside Switzerland, UBS indicated that the bank will continue with its strategy of expanding its capital business. At the same time, a senior Credit Suisse official in India said that it is too early to decide about future plans.
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According to Credit Suisse, the deal has been announced just a day back and will take time to materialise. By 2027, the company has set a target of saving $ 8 billion in annual costs. This is half the amount of Credit Suisse’s total expenditure last year. UBS said it expects the deal to be completed by the end of 2023.
Source: www.tv9hindi.com
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