HSBC will reportedly reenter the onshore private banking market in India, around seven years after its exit in 2015.
HSBC plans to reenter the India private banking market onshore, according to a «Reuters» interview with India CEO Hitendra Dave. The business is will include a full suite of private banking products with expectations to launch within six to 12 months, pending internal approvals.
Last November, HSBC global CEO of wealth and personal banking Nuno Matos said that the British lender was exploring whether or not to reenter India’s onshore private banking market after exiting in 2015 as part of the group's strategy.
HSBC India
Private banking aside, HSBC is expanding in the broader India market with plans to grow its customer base in India in different business segments by as much as four-fold over the next three to five years. Last year, HSBC agreed to buy the mutual fund arm of India’s L&T Finance for $425 million and it also plans to increase its stake in an insurance joint venture.
«We can see the amount of wealth creation in India and the growth in the number of millionaires […] so an in-principle decision has been made to re-introduce private banking in India,» said Dave. «Over the years the group has invested $4.5 billion into the country. In the last few years, we have managed to grow without needing extra capital and that may continue in the foreseeable future also.»
HSBC India's profit before tax rose 9 percent to $1.11 billion in 2021, up from $1.02 billion in 2020, led by 42 percent income growth from its commercial banking business.
