According to Reuters, HSBC Holdings PLC (HSBA.L) plans to relaunch its India private banking business within a year, after the Asia-focused lender has identified the country as a key strategic market for growth.
HSBC exited the Indian private banking business in 2015 as part of a group strategy. The lucrative but very competitive Indian market has few foreign players in a segment catering to high-net-worth individuals.
“We can see the amount of wealth creation in India and the growth in the number of millionaires … so an in-principle decision has been made to re-introduce private banking in India,” Hitendra Dave, CEO, HSBC India said.
“We are running through the process of internal approvals and it may take anywhere from six to 12 months and will include a full suite of private banking products,” he said in an interview.
HSBC earned just over half of its revenue and about two-thirds of reported pretax profit in 2021 from Asia. It has increased its focus on Asia by moving global executives and ploughing billions of dollars into the lucrative wealth management business.
The bank also aims to as much as quadruple its customer base in India in different business segments over the next three to five years, Dave said, taking advantage of some foreign rivals shrinking their business and growing wealth in the country.
HSBC India’s profit before tax rose 9% to $1.11 billion in 2021 from $1.02 billion in 2020 led by a 42% growth in income from its commercial banking business, which includes medium and small enterprises.
“Over the years the group has invested $4.5 billion into the country. In the last few years we have managed to grow without needing extra capital and that may continue in the foreseeable future also,” said Dave.
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