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HSBC to Shut Private Banking in India
Dec 07, 2015

Global banking giant HSBC announced shutting down of its private banking business in India that offers wealth management services. The bank will move around 70 employees working in the division to the retail banking business.

  • HSBC will offer clients the choice to move to its Premier business.

  • HSBC had unveiled a three-year plan in June to pare back HSBC’s sprawling global network, shut money-losing businesses and eliminate as many as 25,000 jobs after compliance costs surged. 

  • Other European lenders including Credit Suisse Group AG and Deutsche Bank AG are also cutting thousands of jobs as they adapt to tougher regulatory demands on capital.

  • The changes are expected to be completed in the first quarter of 2016. 

  • HSBC’s headcount in the country, including its back-office operations, will remain at around 32,000.

  • HSBC’s private banking business targeted customers with a relationship balance of at least $1 million, while its Premier banking operations focus on customers with Rs 25 lakh. 

  • HSBC will invest in the Premier business in India to enhance its product range,

  • Many foreign banks had shut their private banking business in India following stiff competition.

  • Royal Bank of Scotland and Morgan Stanley recently sold their onshore India private banking units as part of their global business restructuring. 

  • In 2013, Swiss bank UBS closed down its India banking business. 

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