HSBC India Expands: RBI Approves 20 New Branches

HSBC India has received approval from the Reserve Bank of India (RBI) to establish 20 new branches across key cities, marking the largest expansion granted to a foreign bank by the RBI in over a decade.

Targeted Cities for Expansion

The new branches will be located in:

• Amritsar
• Bhopal
• Bhubaneswar
• Dehradun
• Faridabad
• Indore
• Jalandhar
• Kanpur
• Ludhiana
• Lucknow
• Mysuru
• Nagpur
• Nashik
• Navi Mumbai
• Patna
• Rajkot
• Surat
• Thiruvananthapuram
• Vadodara
• Vishakhapatnam

These cities have been identified for their growing wealth pools, serving as additional touchpoints for affluent, high net worth, and ultra-high net worth clients with domestic and international wealth and banking needs.

Shift in Strategic Approach

This expansion signifies a notable shift from HSBC’s 2016 strategy, where the bank closed 24 branches in 14 cities to consolidate its network and focus on online retail and wealth management services. With the addition of these new branches, HSBC India’s total branch count will increase to 46, reflecting a renewed commitment to physical presence in India’s burgeoning wealth markets.

Focus on India’s Growing Wealth Market

India’s wealth market is expanding rapidly, with the number of ultra-high net worth individuals projected to grow by 50% by 2028. To address the rising demand for wealth solutions, HSBC has been enhancing its capabilities in the country, including launching Global Private Banking in 2023, completing the acquisition of L&T Investment Management in 2022, and strengthening its affluent-focused Premier Banking proposition in 2024.

Leadership Perspective

Sandeep Batra, Head of International Wealth and Premier Banking at HSBC India, stated, “India is an important market for HSBC, and wealth in India is a focus. We’re aiming to be the preferred international bank for India’s affluent and globally mobile Indians. These new branches will help drive our International Wealth and Premier Banking proposition and build on our momentum with customers in India and our growing non-resident clientele around the world.”

Summary of the news

Why in News	Key Points
HSBC India receives RBI approval to open 20 new branches	– HSBC India to open 20 new branches across major cities in India, bringing total to 46 branches. – The new branches will target high-net-worth individuals. – The cities include Amritsar, Bhopal, Lucknow, Surat, and more. – Expansion follows a previous consolidation in 2016, when HSBC closed 24 branches.
HSBC India’s focus on wealth management and affluent market	– HSBC aims to cater to India’s growing wealth market. – Focus on affluent, high-net-worth, and ultra-high-net-worth clients.
HSBC India’s leadership statement	– Sandeep Batra, Head of International Wealth and Premier Banking, emphasized HSBC’s aim to be the preferred bank for affluent and globally mobile Indians.
Relevant Past Info	– HSBC India had consolidated operations in 2016, closing 24 branches in 14 cities. – HSBC launched Global Private Banking in 2023, and acquired L&T Investment Management in 2022.