UBS to raise India investment bank staff

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UBS has advised on deals including Vodafone's purchase of Hutchison Whampoa's controlling stake in an Indian mobile services firm for $11 billion and Hindalco's $6 billion buy of Canada's Novelis.

A global credit crunch has not curbed the appetite of Indian firms aiming for a more global profile, said Girotra, who earlier headed the investment bank arm of Barclays in India.

Instead, there may be a greater number of smaller deals and a change in the way that deals are financed, she said.

"It obviously can't continue the way it has ... the kind of targets and the kind of financing may be restricted," she said.

"What we will see is an increased number of smaller deals, and activity across the spectrum, not just large companies," Girotra said.

UBS, the world's largest wealth manager, is also awaiting regulatory approval to offer additional services including fixed income, wealth management and high-end retail banking in India.

Globally, UBS has had a turbulent year. It closed Dillon Read Capital Management in May and in October announced its first group quarterly loss in five years. But it has said its wealth management business was poised for strong growth.

India's benchmark share index has risen nearly six times since the start of 2003 on the back of robust economic growth that averaged 8.6 percent over the past four fiscal years, creating wealth and catapulting firms onto the global stage.

The number of millionaires in India rose by nearly 21 percent to more than 100,000 in 2006, the Merrill Lynch/Capgemini wealth report showed, and foreign banks have been ramping up private banking operations to tap a market valued at about $600 billion.

"The amount of wealth you see accumulating is staggering. We can't wait to get started," Girotra said.

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