HSBC Resumes Private Banking Operations In India After Eight-Year Hiatus
HSBC, Europe's largest lender, has announced the resumption of its private banking operations in India after an absence of nearly eight years. The move comes as HSBC aims to cater to the growing population of millionaires in the country and compete with other wealth managers in the market.
The relaunch of HSBC's Global Private Banking (GPB) business in India will target a diverse range of specialised services towards professionals, entrepreneurs, and their families who have investable assets exceeding $2 million. By leveraging its global private banking expertise and extensive international network in commercial banking, HSBC aims to establish itself as a leader in wealth management in Asia.
The decision to re-enter the Indian market is driven by India's rise as the world's fifth-largest economy, surpassing the UK in 2022, with projections of overtaking Japan and Germany by 2027-28. Additionally, India recently surpassed China as the world's most populous country, and the number of ultra-high-net-worth individuals (UHNW) in India is expected to increase by 58 per cent by 2027.
India's significant assets under management, currently valued at $2.8 trillion, are projected to grow by 8 per cent annually by 2026, indicating a wealth opportunity in the country. HSBC sees India's economic growth, supported by demographics, digitisation, and favorable policies, as a driving force behind its decision to strengthen its presence and diversify its capabilities in Asia.
The relaunched private banking business will offer a range of solutions tailored to meet the needs of clients, including bespoke lending and investment products, access to mutual funds, bonds, portfolio management services, insurance options, and structured products. Additionally, clients will have access to alternative investments and a direct equity execution platform.
With this strategic move, HSBC aims to capitalise on the wealth management potential in India and enhance its position in the market by combining its global expertise with the unique opportunities presented by India's economic growth and increasing number of affluent individuals.
