BNP Paribas has decided to shut down its wealth management business in India. The decision was announced on June 16. However, the company has denied that decision was taken due to the COVID Pandemic Situation.
BNS Paribas Spokesperson said, “BNP Paribas Wealth Management has decided to exit its onshore wealth management business in India in order to focus on areas where its global footprint and diversified business strengths allow it to provide clients with more value-added services”.
Adding, “This decision is unrelated to the current pandemic and has no impact on our continued wealth management growth strategy in Asia, which remains an important growth engine for our global franchise”.
According to the sources, around 60 employees may have lost their jobs because of the decision.
The spokesperson said, “We can confirm that a number of roles will be affected. As we are currently looking for redeployment opportunities within the group, it would be inappropriate to comment further”.
The company said that its wealth management clients will be referred when appropriate to its wholly-owned subsidiary company, Sharekhan for brokerage and investment services. It also said that it continues to focus on its corporate and institutional banking in India and since 2012, it has invested nearly 800 million euro to support its growth aspirations in India.
The company is preparing to set up an asset management Joint Venture with Bank of Baroda for distribution of mutual funds in India and Overseas. Its subsidiary company, Sharekhan is also preparing to venture into the discount brokering category business by creating a new subsidiary company.