Swiss bank UBS AG has decided to exit from its fixed income banking business in India as part of its strategy to concentrate on its core strengths and operate capital-light businesses, a source familiar with the developments at the bank revealed.

The source also said that UBS could surrender its banking licence to the Reserve Bank of India (RBI) as soon as next week.

However, the Switzerland-based bank will continue its equity and investment banking operations in the world's second most populous country.

Revealing the developments, the source said, "UBS has decided to exit its fixed income business in India. The bank will continue its equity and investment banking operations and make investments in these businesses as and when needed."

UBS, which has one branch in Mumbai, will reportedly soon present a road map on winding down its Indian banking operations. The process of winding down the banking business in India will consume nearly two years to complete.

As per available figures, UBS had a total of fifty seven employees in India at the end of March last year.

The Swiss bank's profitability in India has been on the decline for the past few years. Its net profit in FY2011-12 slipped 47 per cent from the previous year to Rs 31 crore; while it suffered heavy losses in wealth management and treasury bank businesses.