"Though the write-off of $10 billion will affect the bank's overall operations this year, we have not carried out any regional breakdown," said a UBS executive, suggesting that it is difficult to know at this juncture whether the bank's operations in India will be affected.

UBS has increased its exposure in the Indian market over the last ten years and is an active institutional player in financial operations.

It reckons India as a powerhouse with the potential to become one of the top ten economic giants in the next three to four decades.

Faced with its worst crisis following the meltdown of its complex debt securities linked to the enveloping US subprime mortgages, UBS has come under considerable criticism for not properly assessing the ultimate value of its subprime holdings.

Despite securing rapid relief from the Government of Singapore Investment Corporation (GIC) and an unnamed West Asian investor to bolster its capital base by selling 12.4 per cent of the company, the top management of the bank, especially its new chairman Marcel Ospel came under intense criticism in the local media.

Though UBS had already suffered a write-down of $4.4 billion this fall from the subprime mortgage crisis, it put up a brave face maintaining that the worst was over.

But Monday's admission of a further write-down of $10 billion cast the bank in poor light, said several Swiss papers, arguing that the bank was "smug" and "out of touch with the  market."

However, UBS officials maintained that despite the current crisis, the bank's overall tier I capital base is in good health with the injection of fresh liquidity from three different sources.

They include UBS' agreement with the GIC and a West Asian investor to "subscribe to an issue worth Swiss franc 13 billion of mandatory convertible notes," "re-sale of 36.4 million treasury shares" and moves "to replace the 2007 cash dividend with a stock dividend".

"These three actions, when completed and approved, will strengthen USB's regulatory Tier I capital by approximately Swiss france 19.4 billion" which will result in Tier I capital ration to above 12 per cent, the highest in the international banks, UBS official said.

UBS Chairman Marcel Ospel will continue to head the world's largest wealth manager, according to the country's powerful bank regulator.