HSBC targets India’s wealthy clients to boost growth

HSBC is intensifying its expansion into India’s wealth management sector, directing resources toward affluent clients and individuals with international connections to fuel growth in the world’s fastest-expanding major economy. The bank, headquartered in London, intends to broaden its footprint beyond India’s largest cities and establish itself among the top four or five private banks in the country by 2030.

This initiative centers on three priorities: wealth management, transaction banking, and what Hitendra Dave, HSBC’s CEO for India, terms globality—utilizing the bank’s worldwide network to serve clients managing wealth and business interests across borders. The approach directly challenges domestic competitors such as ICICI Bank and Kotak Mahindra, which are also strengthening their wealth management divisions.

Foreign banks operating in India encounter obstacles, including limits on new branch openings and fierce competition for skilled personnel. While some international lenders have withdrawn, others like Standard Chartered and Barclays continue to maintain active operations. HSBC’s planned expansion includes the launch of 46 new branches across 34 cities within the next two years, with locations set to include Bhubaneswar, Rajkot, Jalandhar, and Mysuru. Currently, it operates 34 branches nationwide, trailing Standard Chartered, which leads foreign banks with 80 branches.

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The private banking division targets clients holding at least $2 million in investable assets, a demographic expanding as more Indians pursue education, careers, and investments abroad. HSBC’s recent performance in a foreign-exchange swap program for India’s diaspora, processing $10.9 billion in transactions over three months, demonstrates its commitment to serving globally connected clients. In the same program, ICICI Bank ranked second with $8.4 billion in disbursements.

Transaction banking represents another growth area, with HSBC assisting businesses in payroll management, foreign-exchange services, dividend distributions, and liquidity solutions. The bank is also strengthening client relationships through premium credit cards with annual fees reaching up to 110,000 rupees (approximately $1,147) and mortgages for high-value properties. Outstanding mortgage balances increased by 25% year-over-year, totaling 257 billion rupees by March 31, as the bank prioritizes larger loan volumes.