15,000 staff left in limbo after UBS acquisition

15,000 staff left in limbo after UBS acquisition

The fine print of the UBS acquisition of Credit Suisse is not yet but 15,000 employees assisting Credit Suisse's India operations have been left in a state of uncertainty. The main shareholder, Saudi National Bank, said it would not invest any more funds in the bank, which caused the turmoil at Credit Suisse. Its annual report cited weaknesses in internal control.

In India, the bank has 15,000 employees, which is its second largest employee footprint, just behind its operations in Switzerland.

The 15,000 strong Indian workforce includes employees supporting the direct operations of the bank, which account for between 5,000 and 7,000 as per various reports.

The rest of the employees work for the bank's global IT operations.

The bank has offices in six Indian cities, Mumbai, Pune, Gurgaon, Bangalore, Hyderabad and Kolkata.

5. Credit Suisse's Mumbai, Pune and Gurgaon offices house employees directly involved in the bank's day to day operations.

A part of the bank's global IT operations are handled from its Bengaluru, Hyderabad and Kolkata offices.

In a release last year, the Swiss lending giant stated that 25 per cent of its IT employees are housed in India. A large part of its IT operations is handled from India.

Credit Suisse has a banking license approved by Indian regulatory bodies and operates in wealth management, investment banking, and brokerage services.

The Swiss lender had a deposit base of Rs 2,800 crore in India as of March 2022. The total income is Rs 804 crore and the net profit is of Rs 303 crore as a result of its loans and advances of Rs 947 crore.

Credit Suisse said in an earlier statement that India is the second-largest footprint for Credit Suisse outside of Switzerland and is an important recruitment centre for the bank globally. It is not known if UBS will continue Credit Suisse's India operations. UBS surrendered its licence a decade ago, even though Credit Suisse has a licence to operate in India.

Experts say that it's most likely that the UBS will continue Credit Suisse's IT operations out of India because of cost efficiencies.