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Hong Kong and Shanghai Banking Corp. (HSBC) on Friday said it 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 cab be served by its Premiere banking services, which serve customers with a business relationship worth Rs.25 lakh every year, according to Bloomberg.
“The decision to shut down Indian private banking operations was not due to the government action against black money,” the bank’s spokesperson said. “It was purely business related.”
The private banking arm posted a $7 million profit before taxes for the first half of the year, while the retail banking and wealth management unit posted a $3 million loss, Bloomberg said.
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 to close down India private banking business - Livemint
The decision was taken after a review of the bank’s global private banking business in India, as HSBC felt these customers cab be served by its Premiere banking services, which serve customers with a business relationship worth Rs.25 lakh every year, according to Bloomberg.
“The decision to shut down Indian private banking operations was not due to the government action against black money,” the bank’s spokesperson said. “It was purely business related.”
The private banking arm posted a $7 million profit before taxes for the first half of the year, while the retail banking and wealth management unit posted a $3 million loss, Bloomberg said.
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 to close down India private banking business - Livemint
