The Indian operations of Switzerland's UBS banking and financial services group are to focus on letters of credit (L/C) and other corporate banking services.

Switzerland's largest bank is currently battling a slowdown in its main investment banking and wealth management business in India, according to its managing director and group chief executive officer.

Changing focus

Aashish Kamat said in an interview earlier this month that UBS will be diversifying into corporate banking.

Under that umbrella, UBS will offer L/Cs, other trade financing services, transaction banking and cash management services to companies.

Disappointing performance

Even though UBS has just one branch in India, it seems determined to maintain a foothold in the Indian market despite disappointing performance in its customary investment activities.

Kamat says that in the first six months of this year, the fee pool was only US$150 million compared to US$1 billion for a full-year basis or $500 million on a half yearly in what the banker describes as "the best of times".

UBS started commercial banking operations in India in 2009, although its brokerage and advisory business began in the mid-1990s.

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