HSBC Holdings Plc is all set to shut down private banking business in India, becoming the third foreign private bank to close operations in the world’s fastest growing major economy.
Royal Bank of Scotland and Morgan Stanley were the other two banks to make exits from India as they struggled to enhance their accounts despite a growing population of millionaires.
The bank, which employees more than 30,000 people offering corporate, retail and investment banking services, told Reuters that it will be shutting private banking shop which employs 70 people.
“After a strategic review of global private banking operations in India, we have decided to close the business. We will work closely with our clients to minimise the impact of this decision on them, offering them the choice to move to HSBC Premier, our global retail banking and wealth management proposition, where appropriate,” HSBC spokesperson told VCCircle.
HSBC premier is a premium banking service started by HSBC and caters to clients with a relationship value of Rs 25 lakhs in India.
“Our priority is to support our staff and client through these changes which are expected to be completed in the first quarter of 2016,” the spokesperson added.
While banking operations have been hit worldwide, HSBC has also landed in trouble with the Indian authorities. India’s central bank, Reserve Bank of India, has probed HSBC India’s operations for irregularities in its processes.
Europe’s biggest lender is not the only bank to shut operations. Earlier this month, Standard Chartered had announced plans to cut 15,000 jobs globally as part of a restructuring exercise while Deutsche Bank had announced trimming one in three jobs across the globe after reporting a net loss of $6.6 billion in the September quarter.
