Morgan Stanley MS +2.48% Monday said it is selling its Indian wealth management business to Standard Chartered PLC for an undisclosed sum.
“Morgan Stanley will work closely with Standard Chartered over the coming months to ensure a smooth transfer of our wealth management clients currently serviced in India,” the U.S. investment bank said in an emailed statement. “This process is expected to be completed by the end of 2013.”
Morgan Stanley started the business in September 2008, when India’s economy and stock markets were booming. It offers investment advisory services in equities, fixed income and private equity, and made up for less than 5% of total India income in 2012.
The economy grew 9.3% in the fiscal year ended March 31, 2008, but only 6.3% in 2012. The government estimates growth of 5% in 2013.
Morgan Stanley started reviewing the business last year because it hadn’t grown as much as it had anticipated, a senior executive told The Wall Street Journal in November.
In a separate emailed statement, Standard Chartered Bank said the purchase will help its existing private banking business in what is one of its biggest markets.
Marketwatch
