HSBC to exit India

[Rangila]

HSBC to exit India

HSBC Holdings Plc will shut its private banking business in India, a spokesman said, marking the exit of another foreign bank from the cut-throat business in Asia's third-largest economy, reports Reuters.


"After a strategic review of the global private banking operations in India, we have decided to close the business," the Mumbai-based spokesman said. "This marks further progress in the HSBC group strategy to simplify business and deliver sustainable growth."


Many foreign wealth managers had scrambled to open up shop in India a few years ago and aggressively ramped up operations to take advantage of robust economic growth, only to find themselves struggling. Even though India's economy has been minting millionaires at a strong pace, it has failed to translate into profits for the foreign wealth managers that have set up teams of well-paid bankers to help manage those riches.

 

[Guynextdoor2]

'Private Banking', not commercial or consumer banking as a whole.

 

[Beast]

A world wide well known bank exit India. Doesn't sounds a shiny news for India.

 

[CHN Bamboo]

only to find themselves struggling.

How can it happen?
@AndrewJin @Wolfwind

 

[nForce]

A world wide well known bank exit India. Doesn't sounds a shiny news for India.

They are not able to keep pace in the competition. It means other players are doing better in an economy that is growing at a steady rate. It is those players which sent HSBC packing, not the economy in general. I suggest you read the report one more time.

 

[AndrewJin]

How can it happen?
@AndrewJin @Wolfwind

HSBC is returning to HK.
HK and Shanghai Banking Cooperation.

 

[JanjaWeed]

So basically HSBC is closing down it's 'money laundering & stashing black money abroad' business down? That's a good news for India..

BTW misleading thread title.. private banking is only meant for high-net-worth individuals who enjoy high levels of income or invest sizable assets.

 

[Beast]

They are not able to keep pace in the competition. It means other players are doing better in an economy that is growing at a steady rate. It is those players which sent HSBC packing, not the economy in general. I suggest you read the report one more time.

Or probably there is really no business in India.

 

[TejasMk3]

HSBC has been going down for a while now ever since the scandals, they've exited other emerging economies - Turkey, Brazil for ex, and this is probably part of a company wide process.

They also figured big time in the black money cases:
Black money: I-T dept to file complaint against HSBC bank for 'abetting' tax evasion in India - The Times of India

 

[nForce]

Or probably there is really no business in India.

OK

 

[Manindra]

How can it happen?
@AndrewJin @Wolfwind

May be due to this

Well after Money laundry fiasco , I am not surprised
Money laundering: HSBC fears significant fines - The Times of India

 

[third eye]

A world wide well known bank exit India. Doesn't sounds a shiny news for India.

Or probably there is really no business in India.

HSBC is winding down almost worldwide.

 

[Saurabh jindals]

Greatest news of the year ! HSBC nothing but carrier to take out politicians black money to Switzerland.

 

[RazorMC]

Most high-net worth Indians are likely surrounded by personal wealth managers who advise on a wide range of issues incl taxes. Why would they need HSBC for that?

 

[Manindra]

Most high-net worth Indians are likely surrounded by personal wealth managers who advise on a wide range of issues incl taxes. Why would they need HSBC for that?

Money Laundering.