HSBC Holdings Plc has decided to shut its India private banking operations after a strategic review, a spokesman for the bank said. The private banking customers will be given the option to be a client of HSBC Premier – its global retail banking and wealth management proposition.
“After a strategic review of the global private banking operations in India, we have decided to close the business,” the spokesman said.
“We will work closely with our clients to minimize the impact of the decision on them, offering them the choice to move to HSBC premier, our global retail banking and wealth management proposition, wherever appropriate,” he added. The premier banking clients needs to maintain a much higher relationship balance as compared to private banking customers.
The Indian private banking arm of HSBC has about 70 clients who will transferred. HSBC employees about 32,000 in India, and there may not be any lay-off.
HSBC India reported 12 per cent dip in pre-tax profit for the January-June period at $335 million due to a fall in the merchant banking, retail banking and wealth businesses.
“We are investing in HSBC premier in India to enhance the range of products and services available to select customers with more sophisticated needs. Our priority is to support our staff and clients, through these changes, which are expected to be completed in the first quarter of 2016,” he added.
Earlier in June, HSBC’s chief executive officer Stuart Gulliver, presented a roadmap to close loss-making businesses, cut down its network, a move that would impact 25,000 jobs globally.
It also said the move to close private banking operations also marks further progress of HSBC group’s strategy to simplify its business and deliver sustainable growth.
