HSBC to relaunch private banking business in India within a year

0

A yellow ambassador taxi drives past the HSBC bank building in Kolkata November 5, 2013. REUTERS/Rupak of Chowdhuri

Join now for FREE unlimited access to Reuters.com

Register

MUMBAI, June 30 (Reuters) – HSBC Holdings PLC (HSBA.L) plans to revive its private banking business in India within a year, its Indian CEO told Reuters on Thursday, after the Asia-focused lender identified the country as a key strategic player. market for growth.

HSBC exited the Indian private banking business in 2015 as part of a group strategy. The lucrative but highly competitive Indian market has few foreign players in a segment aimed at wealthy individuals.

The London-based bank is preparing to relaunch its business in India at a time when it is focusing more on Asia, which is the largest region in terms of profit generation with Greater China and India among its main markets. .

Join now for FREE unlimited access to Reuters.com

Register

“We can see the amount of wealth creation in India and the growth in the number of millionaires…so a policy decision has been taken to reintroduce private banking in India,” said Hitendra Dave, CEO of HSBC India.

“We are going through the process of internal approvals and this may take six to 12 months and will include a full suite of private banking products,” he said in an interview.

Currently, HSBC is focused on catering to wealthy Indians from its global hubs in Singapore, London and the Middle East.

Nuno Matos, HSBC’s global CEO for wealth management and personal banking, which includes private banking activities, told Reuters in November last year that the bank was considering re-entering onshore private banking in India. Read more

HSBC earned just over half of its revenue and around two-thirds of reported pre-tax profit in 2021 in Asia. He has focused more on Asia moving global executives and pumping billions of dollars into the lucrative wealth management industry.

The bank is also aiming to quadruple its customer base in India across different business segments over the next three to five years, Dave said, taking advantage of some foreign rivals scaling back their business and increasing wealth in the country.

HSBC India’s pre-tax profit rose 9% to $1.11 billion in 2021 from $1.02 billion in 2020, driven by 42% growth in revenue from its commercial banking business, which includes medium and small businesses.

“Over the years, the group has invested $4.5 billion in the country. Over the past few years, we have managed to grow without the need for additional capital and this may continue for the foreseeable future as well,” he said. said Dave.

Last year, the lender agreed to buy the mutual fund arm of L&T Finance Holdings (LTFH.NS) for $425 million, and also plans to increase its stake in the insurance joint venture. Read more

“HSBC has identified India as one of its key strategic markets and we have huge potential for organic growth, but we can also look at inorganic growth if an opportunity arises,” the Indian CEO said.

Join now for FREE unlimited access to Reuters.com

Register

Reporting by Nupur Anand; Editing by Sumeet Chatterjee and David Evans

Our standards: The Thomson Reuters Trust Principles.

Share.

About Author

Comments are closed.