HSBC says to shut down India private banking business

This marks the exit of another foreign bank from the cut-throat business in India

Mumbai

: HSBC Holdings Plc will shut its private banking business in India, a spokesman said, marking the exit of another foreign bank from the cut-throat business in India.

-"After a strategic review of the global private banking operations in India, we have decided to close the business,-" the Mumbai-based spokesman said. -"This marks further progress in the HSBC group strategy to simplify business and deliver sustainable growth.-"

Many foreign wealth managers had scrambled to open up shop in India a few years ago and aggressively ramped up operations to take advantage of robust economic growth, only to find themselves struggling.

Even though India's economy has been minting millionaires at a strong pace, it has failed to translate into profits for the foreign wealth managers that have set up teams of well-paid bankers to help manage those riches.