Barclays Finance will close NBFC branches in India
At present Barclays finance Seven to nine NBFC branches would be kept to service loans.
Barclays Finance India, plans to close the majority of its branches here, as part of the lender’s plan to scale down retail operations in the country. The number of branches would be reduced to a ‘single digit’ from around the current 30.
“Barclays has decided not to book fresh retail loans in India. It does not make sense to keep so many NBFC (non-banking financial company branches). The process of closing many of these branches has already started,” said a banker, requesting anonymity.
In India, NBFCs do not need permission from the Reserve Bank of India (RBI) to open a branch.
Barclays had a little over Rs 3,000 crore in retail assets comprising mortgage loans, personal loan and loans to small businesses that it lent in India through its bank and non-banking finance branches.
Earlier this month, it had decided to focus on profitable business ventures like wealth management and investment banking and scale down its retail operations in India. It sold its performing credit cards portfolio to Standard Chartered Bank and is also open to selling retail loans of over Rs 3,000 crore.
The lender will, however, accept deposits from select clients, while focusing on corporate, wealth management and investment banking businesses.
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