HSBC is making a bold push to challenge India's private-sector banks, with India CEO Hitendra Dave targeting to become one of the top four or five private banks by 2030 in the wealth management business. As reported by The Economic Times, the London-based lender is doubling down in the world's fastest-growing major economy across three key areas: wealth management, transaction banking, and what Dave calls 'globality' - using its international network to cater to clients whose businesses and wealth span borders. The growth drive puts HSBC in more direct competition with larger local rivals including ICICI Bank Ltd. and Kotak Mahindra Ltd. for a slice of India's fast-expanding wealth pool, even as the market remains tricky to navigate with domestic banks scaling up and firms founded by senior bankers fighting for clients and talent.
HSBC is expanding to 46 branches across 34 cities in India over the next two years, from its current 34 branches, taking it further into smaller places. According to The Economic Times, new locations include Bhubaneswar in the east, Rajkot in the west, Jalandhar in the north and Mysuru in the south. The bank's private bank generally targets customers with at least $2 million in investable assets, with Dave describing the next generation of Indian wealth as increasingly 'global' as more Indians study and work overseas, build international businesses and invest globally. HSBC's expansion is already showing results, with the firm recently emerging as the biggest lender to India's vast diaspora under a special foreign-exchange swap program, disbursing $10.9 billion from GIFT City in three months, with ICICI Bank ranking second at $8.4 billion.
HSBC, Standard Chartered Plc and Barclays Plc are among a relatively small group of foreign banks building out their wealth management businesses in India, even as some global lenders have pulled back. As reported by The Economic Times, Citigroup Inc. sold its Indian consumer banking unit to Axis Bank Ltd., while Kotak agreed this year to acquire Deutsche Bank AG's retail and wealth management businesses in India. Foreign lenders face tighter restrictions on opening branches than their domestic rivals, making it harder to build nationwide networks. The market is particularly challenging as domestic banks are scaling up while firms founded by senior bankers are fighting for clients and talent, helping drive pay for relationship managers to record highs. Standard Chartered currently has the largest network among foreign banks in the country, with 80 branches.
HSBC India reported a net profit increase of 4 per cent year-on-year in the first half of 2026, driven by higher revenue from corporate and institutional banking businesses. The bank is using premium credit cards and large-ticket mortgages to deepen relationships with wealthy customers, with annual fees on its premium cards running as high as ₹110,000 ($1,147). As reported by The Economic Times, outstanding mortgages rose 25% from a year earlier to ₹257 billion as of March 31, with the bank focusing on larger loans for premium homes. Transaction banking is another pillar of the strategy, with the lender helping companies process payroll, make foreign-exchange payments, distribute dividends and manage liquidity. HSBC has in recent years sharpened its focus on Asia and wealth management, identifying India as a key growth market.
