“After a strategic review of the global private banking operations in India, we have made a decision to close the business”, a spokesman told Reuters.
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Even though India 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.
HSBC will give its clients the option of shifting from private banking unit to retail unit. The process is likely to be completed by the end of March 2016. “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”.
Many foreign wealth managers scrambled to open up shop in India a few years ago lured by its long-term growth prospects.
HSBC’s private banking business provides long-term wealth management services, including lending and investment management to complex wealth structuring, besides providing investment advisory on mutual funds, bonds, debentures and structured products as also non-discretionary investment advisory services.
HSBC’s private banking business targeted customers with a relationship balance of at least $1 million, while its Premier banking operations focus on customers with 2.5 million rupees ($37,500), according to the people.
For those who are currently using the service in India, they will now have the option to move to the HSBC Premier service, which is a global offering.
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After this move the bank had not given the numbers of how many employees in India will be effected.
