Hong Kong and Shanghai Banking Corp. Ltd (HSBC) will shutter its private banking business in India through which it provides asset-management services to wealthy individuals.
The decision was taken after a review of the bank’s global private banking business in India, as HSBC felt these customers could be served by its premiere banking services, which serve clients with a business relationship worth Rs.25 lakh every year.
The private banking arm posted a $7 millionprofit before taxes for the first half of the year, while the retail banking and wealth management unit posted a $3 million loss.
In 2013, the bank had shut down its retail broking and retail depository service business. At that time, 300 employees in these divisions had been laid off.
HSBC India joins international lenders such as Standard Chartered Plc, Royal Bank of Scotland and Morgan Stanley in deciding to shut down some of their businesses in India.