HSBC is stepping up its focus on India’s affluent customer segment as it seeks to expand its wealth management, transaction banking and cross-border services across the country.
The London-based bank plans to compete more directly with leading Indian private-sector lenders by targeting the country’s growing pool of wealthy customers, including those whose businesses, investments and financial interests span multiple countries.
HSBC India CEO Hitendra Dave said, “Our ambition is to become one of the top four or five private banks in India by 2030,” referring to the bank’s wealth management business.
The bank currently operates 34 branches in India and plans to increase that number to 46 across 34 cities over the next 2 years. The expansion will include smaller cities such as Bhubaneswar, Rajkot, Jalandhar and Mysuru.
“We are building a wealth franchise beyond India’s metro cities,” Dave said, highlighting the growing number of affluent individuals in smaller urban centres.
HSBC’s private banking business generally targets customers with at least $2 million in investable assets. Dave said the next generation of Indian wealth is increasingly global, with more Indians studying and working overseas, building international businesses and investing in overseas markets.
“We can be especially valuable to customers whose financial lives, businesses and wealth cross borders,” he said.
HSBC’s strategy comes as foreign banks face stronger competition from domestic lenders, while regulations on branch expansion make it more difficult for international banks to build nationwide networks. Standard Chartered, which has 80 branches, has the largest branch network among foreign banks in India.
The bank is also expanding its presence as some international lenders have reduced their Indian retail operations. Citigroup sold its Indian consumer banking business to Axis Bank, while Kotak Mahindra Bank agreed to acquire Deutsche Bank’s retail and wealth management businesses in India.
HSBC’s broader India investment plans also align with Group CEO Georges Elhedery’s stated focus on increasing investment in the country and serving affluent customers.
The bank recently became the largest lender to India’s diaspora under a special foreign-exchange swap programme, disbursing $10.9 billion from GIFT City over 3 months. ICICI Bank followed with $8.4 billion.
HSBC is also using premium credit cards and large-value mortgages to strengthen relationships with wealthy customers. Annual fees on some premium cards can reach Rs 110,000, while the bank’s mortgage book has tripled over the past 4 years. Outstanding mortgages increased 25% year-on-year to Rs 257 billion as of March 31, driven by larger loans for premium homes.
Transaction banking remains another key part of the strategy, with HSBC helping companies manage payroll, foreign-exchange payments, dividend distribution and liquidity.
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