(Corrects to remove erroneous reference to Morgan Stanley’s review of India operations in third paragraph.)
May 20 (Bloomberg) -- Standard Chartered Plc agreed to buy Morgan Stanley’s Indian wealth management assets for an unspecified price as it seeks to capture more private banking business in the South Asian nation.
The sale is expected to be completed by the year’s end, New York-based Morgan Stanley said in an e-mailed statement today, without disclosing terms of the deal. The unit accounted for less than 5 percent of its India revenue in 2012, it said.
The transaction will significantly increase Standard Chartered’s private banking assets in the country, the U.K. bank said in a separate e-mailed statement. Morgan Stanley said it will focus on businesses including investment banking, asset management and institutional securities in India after the sale.
Standard Chartered, which earns most of its profit in Asia, will initially pay $8 million for the unit, which has about $800 million of assets under management, a person familiar with the matter said on May 9. It will follow up the payment with an undisclosed sum later, the person said.
India is the British lender’s third-largest market, after Hong Kong and Singapore, company figures show. The London-based bank generated $676 million in profit before tax from the country last year, according to its annual report. That’s almost 10 percent of its total worldwide.
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