Barclays may restart ECM business in India soon

Core Viewpoint - Barclays Plc is preparing to restart its equity capital market (ECM) business in India, aiming to capture a larger share of corporate clients' wallets, particularly in debt and mergers and acquisitions (M&A) advisory services, with operations expected to commence in the next few months [1][2][6]. Group 1: Business Strategy - The bank is currently evaluating the re-establishment of its ECM operations, with a decision anticipated in the coming months, to enhance its market share and deepen its franchise in India [2][6]. - Barclays has a well-established business in debt and M&A advisory for large corporate clients, making the expansion into ECM a logical step to offer a comprehensive range of services [2][6]. Group 2: Historical Context - Barclays had previously discontinued its ECM business in India in January 2016 as part of a broader reduction in operations across nine Asian markets, including India, due to uncompetitive positioning [3][4]. - The closure of the ECM business resulted in the loss of approximately 25 jobs and was part of a strategy to conserve capital under then CEO Jes Staley [3][4]. Group 3: Market Conditions - The renewed focus on ECM operations is intended to provide a full suite of products to corporate clients in India, as the bank aims to recover from past decisions that limited its service offerings [6][7]. - The ECM business was previously profitable for Barclays in India, and its shutdown was primarily due to challenges in the broader Asian market, particularly in China [6][7].