HSBC will not open any more new retail brokering accounts with immediate effect, the bank said in a statement on 17 October.
Mint :Dinesh Unnikrishnan: 19 CT 2013
About 300 people in HSBC’s retail broking and depository businesses will likely lose their jobs
Mumbai: Hong Kong and Shanghai Banking Corp. Ltd plans to discontinue its retail broking and retail depository services businesses in India, operated under HSBC InvestDirect Securities (India) Ltd, following a review of its business in the country, a spokesperson said on Thursday.
About 300 employees at these two divisions will likely lose their jobs, the spokesperson said. HSBC employs about 30,000 people in India.
HSBC will not open any more new retail broking accounts with immediate effect, the bank said in a statement on Thursday.
The bank said it will notify existing clients of the date of discontinuation of its retail broking and depository services, but will continue to provide them with retail broking services until then.
HSBC said it reviewed all options available for the businesses before deciding on the exit.
HSBC had acquired the retail broking business from IL&FS Investsmart Ltd, the broking arm of Infrastructure Leasing and Financial Services Ltd (IL&FS), in 2008.
Employees being laid off 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 said.
The spokesperson said the bank will continue to hire in India.
“HSBC remains committed to India, where it continues to invest in retail banking and wealth management, commercial banking, investment banking and capital markets, institutional broking, asset management and insurance services. 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.
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