HSBC to close down private banking operations in India

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hsbcMUMBAI- HSBC Holdings Plc will close down its private banking business in India and transfer about 70 staff following a strategic review of the operations, according to report.

The London-based lender will move employees from the Indian private banking arm to the Premier banking business under HSBC’s retail bank, according to sources.

Chief Executive Officer Stuart Gulliver, 56, 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.

The changes are expected to be completed in the first quarter of 2016, according to the statement, which didn’t detail the number of affected employees. HSBC’s headcount in the country, including its back-office operations, will remain at around 32,000, the people said.

“India is a priority market for the HSBC Group,” it said in the statement. “We aim to achieve sustainable growth by supporting the needs of our customers in Retail Banking and Wealth Management, Global Banking and Markets, and Commercial Banking, businesses where we have a leading and highly differentiated position.”

The Indian private banking arm posted a $7 million pretax profit for the first half of the year, while the retail banking and wealth management unit posted a $3 million loss.

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