UBS’s application for a banking licence in India appears to be encountering some difficulties, according to a report in the Indian-based Eco...

UBS’s application for a banking licence in India appears to be encountering some difficulties, according to a report in the Indian-based Economic Times. The Australian-based Macquarie Bank has also been waiting for around the same time as UBS for a licence. The application to the Reserve Bank of India was made more than eight months ago. The Swiss bank is keen to launch a private banking business in India. A number of other foreign banks are also targeting the private banking sector, including HSBC, Citibank and BNP Paribas. Just how much attention Swiss private banks attach to India was highlighted by Pierre Mirabaud’s, chairman of the Swiss Bankers Association, visit to India last week. Mr Mirabaud said that Swiss banks were looking at taking up stakes in Indian private sector banks. According to the report, the RBI has been restricting the number of branch licenses to foreign banks. So far this year it has granted 12 branch licences. Under World Trade Organisation agreements, India is committed to authorize 12 licences a year for new and existing foreign banks.