HSBC gets RBI’s nod to open 20 new branches in India

HSBC India has received approval from the Reserve Bank of India (RBI) to open 20 new bank branches in key cities, it says in a release. This marks the largest expansion given to any foreign bank by the RBI in over a decade. The new branches will open in Amritsar, Bhopal, Bhubaneswar, Dehradun, Faridabad, Indore, Jalandhar, Kanpur, Ludhiana, Lucknow, Mysuru, Nagpur, Nashik, Navi Mumbai, Patna, Rajkot, Surat, Thiruvananthapuram, Vadodara, and Vishakhapatnam.

The branches are expected to open in cities renowned for being wealth pools, focusing on high net worth and ultra-high net worth clients with both domestic and international banking needs, the release highlights.

HSBC, in its release, says the amount of ultra-high net worth individuals is expected to grow by 50% by 2028. “To address rising demand for wealth solutions, HSBC continues to enhance its capabilities and offering in the country, including launching Global Private Banking in 2023, completing its acquisition of L&T Investment Management in 2022, and strengthening its affluent-focused Premier Banking proposition in 2024.”

Highlighting the significance of India for HSBC, Sandeep Batra, head, International Wealth and Premier Banking, HSBC India said, “India is an important market for HSBC and wealth in India is a focus. We’re aiming to be the preferred international bank for India’s affluent and globally mobile Indians. These new branches will help drive our International Wealth and Premier Banking proposition and build on our momentum with customers in India and our growing non-resident clientele around the world.”

HSBC is currently operating in 14 cities in India, including a recently opened branch in Bengaluru, the largest in the country with an 8,300 square foot space.

The RBI has recently allowed overseas bank branches to open rupee accounts for individuals living outside India. These people can now settle transactions with others abroad using balances in their rupee accounts. These rupee account balances can also be used for foreign investments, including foreign direct investments (FDI) in non-debt instruments, offering a new route for rupee-based investments in India.