Mumbai : Asia-focused Standard Chartered Bank announced closure of its loss-making institutional cash equities business with immediate effect and cutting 2,000 more jobs from its retail banking side as part of efforts to save USD 400 million in costs this year.
On retail banking front, the bank said it will continue to focus on key cities and accelerate digitalisation going forward.
This has already resulted in around 2,000 job cuts in the last three months, and it expects another 2,000 jobs to be culled during 2015.
According to sources, the British lender has around 50 people in India at its institutional cash equities, equity research and equity capital markets businesses. Standard Chartered has around 86,000 employees in 70 markets. It is the largest foreign bank in India by branch network. “The closure of the loss-making institutional cash equities, equity research and equity capital market operations will deliver around USD 100 million of cost savings in 2016, and impact around 200 roles across seven of the Group’s 70 markets. In 2015 run-rate savings will broadly offset restructuring costs,” a bank statement from London and Singapore said.
However, the statement did not mention which are the seven markets that will be impacted by the move. StanChart entered the equities business late 2008 after acquiring brokerage Cazenove from JPMorgan.
The exit makes StanChart one of the first global banks to completely quit the equity capital markets business. Announcing the closure of equities business, Group Chief Executive Peter Sands said, “we are continuing to take significant action on costs by exiting or reconfiguring non- core and underperforming businesses, and by increasing the efficiency of our core businesses.”