HSBC Takes Wealth Beyond the Metros
HSBC's latest strategy extends to affluent customers in smaller Indian cities, where wealth creation is spreading. New branches are planned for Bhubaneswar, Rajkot, Jalandhar and Mysuru as the bank expands its physical presence. The move comes despite tighter restrictions on foreign lenders opening branches than their domestic rivals face, which make nationwide networks harder to build. Standard Chartered has the largest foreign-bank network in India, with 80 branches.
The bank’s private banking business generally targets customers with at least $2 million in investable assets. Dave pointed to the growing number of wealthy individuals in smaller centres. Group CEO Georges Elhedery has also said HSBC plans to increase its investment in India, with a growing focus on affluent customers.
The Global Indian Is the Target
HSBC is also betting on customers whose financial lives extend beyond India. Dave described the next generation of Indian wealth as increasingly global, driven by people studying and working overseas, building international businesses and investing across markets. That plays to HSBC's international network, which Dave says makes the bank especially valuable to these clients.
HSBC’s international banking franchise is also generating significant activity. HSBC recently became the largest lender to India’s diaspora under a special foreign-exchange swap programme, disbursing $10.9 billion from GIFT City over three months. ICICI Bank was second, with $8.4 billion.
More Products, Deeper Relationships
HSBC is also using premium credit cards and large-ticket mortgages to deepen relationships with wealthy customers. Annual fees on its premium cards can reach ₹110,000 (about $1,147), while its mortgage book has tripled over the past four years. Outstanding mortgages stood at ₹257 billion as of March 31, up 25% from a year earlier, as HSBC focused on larger loans for premium homes.
Transaction banking is another pillar of the strategy. HSBC helps companies process payroll, make foreign-exchange payments, distribute dividends and manage liquidity, Dave said.
A More Competitive Wealth Market
HSBC’s expansion comes as competition for India’s affluent customers intensifies. Larger local rivals such as ICICI Bank and Kotak Mahindra Bank are scaling up, and firms founded by senior bankers are competing for clients and talent, pushing relationship manager pay to record highs. Standard Chartered and Barclays are among the foreign banks continuing to invest in the market. At the same time, some international lenders have retreated: Citigroup sold its Indian consumer banking business to Axis Bank, while Kotak agreed this year to acquire Deutsche Bank's retail and wealth management businesses in India.
For HSBC, the opportunity is significant, but so is the execution challenge. Building branches in smaller cities, competing for relationship managers and converting affluent customers into broader banking relationships will be central to the bank’s ability to build its wealth franchise.