British Banking giant HSBC has said that it will end its private banking business in India. The move is said to be because of ongoing investigation by Income Tax department against individuals who have undeclared accounts in Swiss Bank . The company plans to complete this move by first quarter of 2016 and move some its customers to premier banking . According to a HSBC spokesperson ” We will work closely with our clients to minimize the impact of this decision on them, offering them the choice to move to HSBC Premier, our global banking and wealth management proposition, wherever appropriate. n view of the tax evasion inquiry, HSBC’s private banking compliance was enhanced, as a result of which it became impossible for them to do business with these very demanding high net worth clients
The move can be attributed to the names of the account holder the Income Tax department revealed who have undisclosed amount and swiss bank accounts. Names of almost 1200 account holders were revealed by a investigative journalist in February this year.
The closure of the bank would not lead to any job losses as according to senior executive of the bank ” There are about 70 people in the business here. Some of them will move out and likely take their clients with them. We are already exploring what opportunities it holds for us.
HSBC is said to be one of the top private banker of the country as it managed funds of worth more than $2 billion . It had about 1000 clients and was among the top banker in the country. It will be interesting to see how this move effects the global business of the bank.