The London-based investment banking company HSBC is exploring to re-enter the Indian private banking business, given the increasing additions of high net worth individuals increasing in the country, along with the record high stock market, which is creating a series of billion dollar startups.
This development by HSBC comes prior to its hiring targets of the Chinese retail wealth management business.
HSBC considers Asia a major investment centre, stating that the wealth in Asian markets is growing twice as fast as other regions of the world.
HSBC Looks Forward to Catering to the Riches in India
The London-based investment bank HSBC is investing an amount of $3.5 billion into the personal banking and wealth businesses, which aligns with the company’s target of becoming the market leader as Asia’s top wealth manager by 2025.
The wealth and personal banking unit of the investment bank contributed nearly $22 billion or 44% to its global revenues last year, clearly highlighting the importance of Asia’s share in its revenue model.
Additionally, as the number of high net worth individuals are on the rise in India, paired with the volatile and improving stock market increasing the pool of billion dollar start-ups in India, HSBC now plans to re-enter the Indian private banking business.
The London-based bank exited the Indian private banking business 6 years back in 2015, as part of a group strategy.
However, it is not considering making a return into the Indian banking business, which even though is highly competitive, is less tapped by foreign players.
“We want to bank mass affluent and high net worth customers. At this moment, the two major pillars we are expanding in India are insurance and asset management,” states the CEO of Wealth and Personal Banking at HSBC, Nuno Matos.
He adds that on the private banking side, HSBC is currently looking forward to catering to wealthy Indians from its global hubs in Singapore, London and the Middle East.
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