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HSBC India Makes Significant Investment in Rapidly Expanding Private Banking Sector

HSBC, the Hongkong and Shanghai Banking Corporation, is making significant strides in bolstering its private and wealth banking services in India, according to Hitendra Dave, the CEO and MD of HSBC India. This move follows the bank’s exit from the private banking sector in 2015, only to reenter the market in July 2023.

In an exclusive interview with Moneycontrol, Dave outlined the bank’s ambition to enhance its offerings and target India’s affluent and high-net-worth individuals (HNIs).

“We aim to become a full-fledged global private bank, offering first-class, top-of-the-line services in the country,” Dave stated.

Dave also pointed out the bank’s positive reception since reintroducing private banking in India, saying, “In three months’ time, the goodwill and responses we’ve received, especially from super-affluent millionaires and billionaires, lead us to believe we’ve made the right decision. Of course, time will tell.”

India’s banking landscape includes 45 foreign banks, operating under various models such as wholly-owned subsidiaries (WOS) and partnerships with Indian counterparts. Typically, foreign banks in India cater to wealthy and HNI clients. HSBC India’s strategy, as explained by Dave, is to exclusively target wealthy families in the country with its private banking proposition.

“We don’t intend this to be a mass-market product. This is by invitation only. In every city we operate, maybe 200 families, 250 families from each city, you multiply that by the number of cities we will have,” Dave elaborated.

HSBC India’s financial performance in 2022 showcased a 15 percent increase in pre-tax profit, reaching $1.27 billion (Rs 127 crore) compared to $1.11 billion (Rs 111 crore) in 2021. In February 2023, HSBC declared itself the largest foreign bank in India by advances and deposits. Additionally, it positioned itself as the largest and sole international group offering a comprehensive range of financial services, including banking, asset management, insurance, and securities.

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