HSBC exits private banking business in India

Chennai: Multinational banking major HSBC on Friday announced its decision to exit private banking business in India while offering its existing clients the HSBC Premier, a global retail banking and wealth management proposition.

There will be no loss of jobs because of the closure decision, said a bank spokesman.

"After strategic review of global private banking operations in India, we have decided to close down the business," the spokesman told IANS, adding HSBC will be closely working with its clients to minimise the impact of the decision on them.

The closure of private banking business is not related to the controversy of black money accounts of over 1,000 Indians in HSBC Geneva.

The spokesperson said HSBC is investing in its HSBC Premier product in India to enhance its range of products and services.

The organisation is silent on the size of portfolio handled by its private banking division in India or the number of people employed in the division.

HSBC now joins Morgan Stanley and Royal Bank of Scotland in exiting the private banking space as a part of the business rejig process.