HSBC to shut its private banking operation in India

“After a strategic review of our global private banking operations here, we have chose to close down the business”, a bank spokesperson said today. About 70 people working in the division headed by Shantanu Ambedkar will be absorbed into the retail bank. The business will be shut by March, 2016 and select customers can move to HSBC Premier, its global retail banking and wealth management platform.

The giant global bank HSBC Holdings Plc on Friday said in a statement that they will shut down its private business in India, which will mark another exit of a foreign bank from the country.

HSBC’s private banking business provides long-term wealth management services, including lending and investment management to complex wealth structuring, besides providing investment advisory on mutual funds, bonds, debentures and structured products as also non-discretionary investment advisory services.

For those who are currently using the service in India, they will now have the option to move to the HSBC Premier service, which is a global offering.

However, bank officials were quick to dismiss any notion of this shutdown being attributed to the scandal and stressed that the controversy involves Indians’ accounts in HSBC Geneva.

The bank had earlier announced thousands of job cuts as part of cost rationalisation globally.

The private banking arm of HSBC has posted a $7 million profit before taxes for the first half of the year, while the retail banking and wealth management unit posted a $3 million loss, according to Bloomberg.

The value of assets managed by HSBC’s private banking unit in India was not immediately clear, but wealth management industry sources said the bank was not one of the top three players in the segment.

Many foreign wealth managers had scrambled to set up shop in India a few years ago and aggressively ramped up operations to take advantage of robust economic growth in Asia’s third-largest economy, only to find themselves struggling.


Saturday, November 28th, 2015 EN

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