The British lender has decided to focus on profitable business ventures such as wealth management and investment banking.
According to sources familiar with the developments, the bank may sell more than Rs 3,000-crore (Rs 30-billion) worth of retail assets in India comprising mortgage loans, personal loans and loans to small businesses.
Barclays is currently restructuring its banking operations in India and has decided not to book new retail loans.
It will, however, accept deposits from select clients while focusing on wealth management, corporate and investment banking services.
Barclays currently employs around 1,200 employees in its banking and non-banking finance operations in India.
The restructuring may lead to around 20 per cent of its staff in these businesses losing their jobs.
The group, which comprises investment banking, wealth management, banking and offshore services businesses, employs around 11,000 people in India.
Barclays has recently sold its India credit cards business to Standard Chartered Bank at a hefty discount.
However, the foreign bank may a get a premium on its retail assets as most of these loans are backed by securities.
According to Reserve Bank of India data, Barclays' net non-performing asset ratio improved significantly to 1.46 per cent in 2010-11 from 5.15
StanChart to buy majority of Barclays' India cards
'Tough to fix firm number on growth'
Will Hyderabad-Chennai route have these high speed trains?
Markets end marginally higher on firm global cues
PIX: Chinese economy in trouble as manufacturing slows down