Kevin Watts, who is now heading Merril Lynch operations in India, will take over as the managing director & country executive for Bank of America, India. Watts, who will succeed Vishwavir Ahuja, is likely to take charge during the first week of September 2009. The official announcement to this effect will be made soon. August 25, 2009, would be the last working day for Ahuja, said sources.
Sources also revealed that top Bank of America officials had been paid hefty sums as severance packages while quitting the firm. However, the company spokesperson declined to comment on this issue. ?No idea,? she said.
In March 2009, Watts took over as the country head of India Merrill Lynch.
Recently, JM Financial Services hired Sanjeev Bajaj, Shashwat Belapurkar and Dhiraj Dave from Bank of America Merrill Lynch in India for its fixed income and asset reconstruction businesses. Bajaj was the country treasurer with Bank of America. He has joined JM Financial as the managing director for fixed income. Belapurkar, who was heading the debt capital markets at BoA, has been appointed managing director, head of debt capital markets and sales and trading in fixed income, at JM Financial Services.
Dave has also left BoA to join as an associate director in JM?s asset reconstruction company.
After serving for 27 years, Vishwavir Ahuja decided to quit the bank last month. However, sources point out that the decision to leave was more of a personal one and has something to do with the exciting nature of the new venture he will be involved in shortly.
The top management of Bank Am had made efforts to persuade Ahuja to continue in his position but had failed.
FE had already reported on Ahuja?s exit from the bank last month. Ahuja is expected to join an Indian financial company as a promoter.
During Ahuja?s tenure, BoA, which is into wholesale banking, has achieved a significant growth. In the last five years, the bank has recorded a 50% compound growth annually in its earnings and its reflection has been there on the balance sheet (it has doubled in the last five years).
In India, the bank operates various businesses like investment banking, global product services, debt capital markets, risk management, cash management and treasury services. In September 2008, Bank of America agreed to acquire Merrill Lynch in an all-stock transaction for $50 billion.
The investment banking division, wealth management section and equity business of Merrill Lynch are now part of BoA. The combination of the two has created a huge business, which is involved in fixed income trading, stock underwriting, and corporate lending.
