HSBC to expand personal banking in India, aims high-earning professionals

HSBC is gearing up for a significant expansion in personal banking in India, aiming to tap into the burgeoning pool of high-earning professionals in the country. The move comes after the July launch of its private bank in India, targeting ultra-high net worth customers with a net worth exceeding $30 million. The bank intends to broaden its focus to include a growing number of affluent Indian professionals, whose earnings and spending capacity have seen a notable increase in recent years.

Hitendra Dave, HSBC India CEO, highlighted the shift in the bank's strategy, emphasizing the exponential growth of the target market in the last three years. The new private banking business in India, as part of HSBC's broader focus on Asian wealth management, will extend its services beyond wealth management to include digital credit cards and personal loans for affluent customers.

The decision to expand personal banking is a departure from HSBC's historical approach in India, where its retail banking business existed but had not been a primary area of focus. The move reflects the changing dynamics in India, where a rising number of high-net-worth individuals, defined as those with assets over $1 million, is expected to more than double by 2027.

To cater to this growing market, HSBC plans to launch a "digital card issuance program" and a digital loan product, complementing its existing mortgage loans. The bank also envisions significant investment in technology and an expansion of its branch network to build a robust and profitable retail banking business.

In the first six months of 2023, HSBC India's wealth and personal banking segment, including private banking, mortgages, and asset management, contributed $35 million or 4.6% to its profit before tax. The bank reported a profit before tax of $766 million in the same period, signaling a growth trajectory in its India operations. On the institutional side, HSBC also aims to expand investment banking, capitalizing on potential cross-border fundraising and merger activities amid rising global interest in the Indian economy.