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Hongkong and Shanghai Banking Corporation (HSBC) said on Thursday it had decided to discontinue its retail broking and retail depository services businesses in India. It was operating these under HSBC InvestDirect Securities (India) Ltd.
“HSBC reviewed all options available for the business before deciding on the exit. Impacted employees will be offered a fair and equitable severance pay, in line with HSBC policy, and career transition services will be extended through a professional agency,” the bank announced. It is learnt the move is likely to affect as many as 300 staffers.
HSBC InvestDirect Securities (India) is an arm of HSBC InvestDirect (India), which also offers investment advisory services and securities- related financing through other subsidiaries.
HSBC said it will cease opening new retail broking accounts with immediate effect. It will notify existing clients of the date of discontinuation of its retail broking and depository services and will continue to offer these till then.
The move is part of the bank’s global strategy to review and exit some businesses to cut costs. HSBC had said it would cut 30,000 jobs across the world to save up to $3.5 billion over three years.
"This move represents further progress in the implementation of HSBC's strategy announced in May 2011," the bank said.
It said it remained committed to India and would continue to invest in its other businesses — retail banking and wealth management, commercial banking, investment banking and capital markets, institutional broking, asset management and insurance services — in the country.
“India is a priority growth market for HSBC and its presence across 29 cities in the country is integral to HSBC's global network,” the bank said.
The HSBC Group currently employs around 30,000 people in India. It is expected to remain a net hirer in the country this calendar year, despite exiting retail broking and depository services.
“HSBC reviewed all options available for the business before deciding on the exit. Impacted employees will be offered a fair and equitable severance pay, in line with HSBC policy, and career transition services will be extended through a professional agency,” the bank announced. It is learnt the move is likely to affect as many as 300 staffers.
HSBC InvestDirect Securities (India) is an arm of HSBC InvestDirect (India), which also offers investment advisory services and securities- related financing through other subsidiaries.
HSBC said it will cease opening new retail broking accounts with immediate effect. It will notify existing clients of the date of discontinuation of its retail broking and depository services and will continue to offer these till then.
The move is part of the bank’s global strategy to review and exit some businesses to cut costs. HSBC had said it would cut 30,000 jobs across the world to save up to $3.5 billion over three years.
"This move represents further progress in the implementation of HSBC's strategy announced in May 2011," the bank said.
It said it remained committed to India and would continue to invest in its other businesses — retail banking and wealth management, commercial banking, investment banking and capital markets, institutional broking, asset management and insurance services — in the country.
“India is a priority growth market for HSBC and its presence across 29 cities in the country is integral to HSBC's global network,” the bank said.
The HSBC Group currently employs around 30,000 people in India. It is expected to remain a net hirer in the country this calendar year, despite exiting retail broking and depository services.
