HSBC’s India play: Bold expansion with discipline and global muscle

IF MONOLITHS COULD SPEAK, HSBC’s India head office in Mumbai’s Fort would whisper a tale of empire, endurance, and quiet resurgence. Located at a storied corner along Mahatma Gandhi Road, the entrance to the building is flanked by two stoic lion sculptures. In HSBC lore, Stephen roars with authority while Stitt gazes ahead in calm—a nod to the contrasting temperaments of the legendary Shanghai managers Alexander Gordon Stephen and Gordon Holmes Stitt. Fittingly, they guard the doors of a bank that began life in India as the Mercantile Bank of India in 1853. Continuing with that tradition Hitendra Dave—CEO since 2021—has rewritten HSBC India’s playbook to become the country’s largest foreign bank by total assets (FY24). “India is very much like a candy store for bankers. But you can’t eat all of it. You need to pick what you really want,” Dave tells Fortune India, seated in his plush, heritage-era office tinged with gothic undertones. Unlike some of its peers, HSBC has chosen to deepen its India bet. This year, it became the first foreign bank in decades to receive approval to open 20 new branches in one go—expanding its network from 26 branches in 14 cities to 46 in 34. It’s a rare move rooted in Dave’s long innings at the bank since 2001—spending two decades earning his stripes before ascending to the C-suite. It’s been an interesting transition with HSBC India entering one of its most financially rewarding periods. Net profit has jumped nearly 50%, from ₹3,632 crore in FY21 to ₹5,436 crore in FY24. Net interest income rose from ₹8,360 crore to ₹11,312 crore, even as the return on assets climbed to a record 1.89%—the highest in the bank’s history. The transformation runs deep. Profit per employee has risen from ₹0.96 crore to ₹1.39 crore, with total business per employee now above ₹79 crore. Total assets are up 30%, advances have surged 52%, and gross NPAs have halved from 1.2% to 0.42%; net NPAs now stand at just 0.05%. Deposits have grown from ₹1.65 lakh crore to over ₹2 lakh crore. Across key financial levers—return on capital, pricing power, asset quality, and cost discipline—HSBC India has shown maturity and capital efficiency. Dave is clear: “Execution is the differentiator. We’re not in a race for growth at any cost.” That confidence is now clearly showing up in strategy. The decision to double its footprint across cities is rooted in a clear view of India’s economic and demographic shift. “Ten to 15 years ago, you could be in Delhi, Mumbai, Chennai, Bengaluru and meet most of your target customers. That’s no longer the case,” says Dave. The bank is now chasing emerging centres of wealth and employment beyond the metros. Much of this expansion is driven by the bank’s non-resident and global Indian thesis. It wants to serve professionals who straddle India and global hubs such as the U.S., the U.K., and Singapore. “Vadodara has a large NRI population abroad. When they come back, they should see my branch. And when they go back, they should see the linkage,” says Dave. For him, the move also signals long-term commitment at a time when most foreign banks are shrinking. “This is the first time in two decades that any international bank is talking about branch expansion,” says Dave. Still, he’s careful not to frame it competitively: “I’m not saying my strategy is correct or someone else’s is wrong. But that’s how the market reads it.” The underlying message, however, is clear: HSBC wants to be where India’s new economy is growing—and it’s here to stay. That global orientation defines the entire business. “If your business is to buy from Karol Bagh and sell in Juhu, I may not be your best bank. But if you buy from Karol Bagh and sell in Mexico, I’m your bank. Where I distinguish myself is my internationalism,” says Dave. That internationalism cuts across wholesale banking, wealth, and premier services. HSBC handles around 10% of India’s forex flows, exports, and foreign direct investment; about 15% of cross-border custody assets; and is a significant conduit for international capital entering the country, managing 16% of foreign investor custody assets and 20% of new foreign portfolio investor registrations. Most importantly, HSBC is the preferred bank for over 46% of all multinationals operating in India. If wholesale banking has been HSBC’s traditional stronghold, wealth is the candy that the bank is eager to bite into—albeit with strategic discipline. But the ambition here is defined not by mass retail scale, but by global capability. “You open your account in India, and I’ll open one for you in GIFT City—same relationship manager, same time zone. Then you invest. I’ll make those global products available to you. How many others can do that?” points out Dave. That cross-border integration and focus on the affluent segment, especially NRIs, is where foreign banks see their edge. Echoing Dave’s views, Gayathri Parthasarathy, financial services sector leader at PwC India and global financial services technology leader, highlights that foreign banks continue to have a strong appeal among premium customers. “They are well-positioned because they offer tailored solutions for the segments they serve—particularly top executives of MNCs and NRIs,” she says. The addressable market, Dave believes, is large but targeted. “India has 1.4 billion people. But there are about 30 million who are really running the big engine of the economy—and even that number is an endless runway.” Agrees Parthasarathy. “Anyone with an income above ₹50 lakh often sees strong alignment with a foreign bank’s brand, services, and global reputation,” she says. The strategy isn’t about grabbing market share—it’s about owning a niche that plays to HSBC’s global muscle and building long-term relevance for a globally minded Indian elite. Its “Premier” and “Private Wealth” offerings are being retooled for a younger, global Indian audience. “We now want to double our ‘Premier’ customer base,” says Dave. A Premier client typically brings in ₹1 crore in total relationship value; Private Wealth starts at $2 million. “These are global professionals,” he adds. “They want wealth advice, international credit cards, and global investing—all under one roof.” HSBC’s Premier credit card, for instance, offers a 0.99% forex markup, bundled with elite travel. “It’s not a mass product,” says Dave. “It’s invitation-only. And our spends are already up 50%.” But winning in this segment will require more than just premium products. Parthasarathy sees tremendous potential for foreign banks to enhance their client experience through more personalised intelligence. “I was with a client recently—when the RM offered a credit card, the client inquired about a foreign education loan. This illustrated a clear opportunity: empowering RMs with richer insights can lead to more relevant and impactful engagements. No two affluent clients are the same—and recognising that difference can be a game-changer.” Sandeep Batra, head of international wealth and premier banking, believes the bank is aligning with what he calls the “global Indian”—not just NRIs, but a rising cohort based in India with global exposure. “It’s anyone who thinks global—whether through travel, investments, or educating their kids abroad. That’s our sweet spot,” he says. Affluence, Batra observes, is evolving. Today’s wealthy Indians aren’t just asset holders—they’re global allocators. They want exposure to private equity, venture funds, curated alternatives, and international markets, all with regulatory clarity and execution ease. Batra draws from personal experience. Having returned to India after two decades abroad, he faced a portfolio split across geographies, a child considering global education, and complex decisions on tax, currency, and structure. “Even for someone in the business, it’s not trivial,” he admits. “What’s legit under liberalised remittance scheme? Can I buy NVIDIA shares through my bank? Access a Latin America ETF?” For such clients, the value lies not just in advice—but in access. Parthasarathy also observes a significant evolution in the remittance space. “Today’s remittances are increasingly driven by professionals working in global hubs like the U.S., the U.K., and Singapore—across banking, BFSI, and other white-collar sectors. This presents a great opportunity for foreign banks to provide high-quality, globally integrated advisory services.” HSBC’s “Premier in One, Premier in All” model allows instant elevation across Singapore, the U.A.E., the U.K., or the U.S.—crucial for quick onboarding, remittances, and localised service. The bank’s offerings now span everything: from international investments, multicurrency accounts, an insurance JV with Canara HSBC Life to mutual funds—the acquisition of L&T Mutual Fund only added to its heft. Yet it keeps its platform open—with access to over 600 third-party funds. “We’re proud of what we manufacture,” says Batra, “but we want clients to access the best”. What sets HSBC apart is how tightly integrated its verticals are. It doesn’t just distribute investment products—it may also bank the VC fund behind them and manage the personal wealth of the fund’s founders and employees. “Half of India’s unicorns and MNCs bank with us,” says Batra. That interconnected approach to wealth is also what powers HSBC’s wholesale business—where cross-border complexity is more of a competitive edge. Ajay Sharma, head of banking, offers a ground-level view of HSBC’s growth. “We work across the spectrum—from Reliance and Unilever to mid-sized exporters and VC-backed startups,” he says. The sweet spot: clients with cross-border ambitions. “We add the most value when there’s an international dimension—trade, investment, or expansion.” HSBC handles 10% of India’s cross-border exports, giving it a front-row seat to economic shifts. As Indian companies—from IT and pharma to chemicals—look outward, HSBC has become their natural partner. Private capital is also fuelling momentum. Sharma sees rising M&A activity, especially by Indian mid-market firms acquiring companies in the U.S. and Europe. “They come to us for cross-border financing—we’re uniquely positioned to deliver.” Even for domestic clients, HSBC adds value. Sharma cites Ather Energy’s IPO as an example. “We backed them early with working capital and supported their capital market journey,” he says. That’s part of HSBC’s strategy to partner early and scale with clients. “We serve over 10,000 mid-market and startup firms—some are small today, but they’re tomorrow’s unicorns.” Sharma believes HSBC’s international presence is a hedge against geopolitical shifts. “Deglobalisation doesn’t scare us—it plays to our strength. We’re present in 58+ countries. When companies recalibrate supply chains, we’re already on both ends of the corridor,” says Sharma. While much attention has been focussed on HSBC’s expanding wealth franchise and retail push, its Markets and Securities Services (MSS) division has quietly become a critical growth engine—scaling over 110% in three years with strong momentum across FX, fixed income, custody, and equities. “We’ve grown across all verticals—corporate FX, institutional rates, credit, equities, and especially custody,” says Anita Mishra, head of MSS. “Our strategy is to grow at 2–2.5x GDP. Since GDP includes rural and informal sectors where we aren’t present, this focus has worked well.” The trade-driven corridor business—particularly with the U.S., the U.K., Europe, and intra-Asia—has been a key driver. HSBC has seen rising traction with mid-to-large U.S. firms operating in India and steady growth in European client flows. Custody, in particular, has seen sharp gains. HSBC has won major mandates from broker-dealers, asset managers, and private funds, often displacing incumbents. “We’ve landed needle-moving deals and now are among the top three custodians in India,” says Mishra. The business is capital-light but tech-intensive, requiring deep automation and digital capability. Globally, HSBC is the No.1 securities services provider in Asia. In India, it’s scaling fast. “We’re automating fund accounting, custody, and clearing—customisation at scale is the goal,” says Mishra. A shift in global custody dynamics is also working in HSBC’s favour. “Earlier, U.S. asset managers by default chose U.S. banks for sub-custody. Now they’re asking who’s best in Asia or Europe, and consolidating providers. That plays to our regional strengths.” India’s demand for capital—equity and credit—is only growing. “We’re investing in private credit too,” Mishra says. “Clients across pharma, solar, and manufacturing are expanding globally. These trends are slow but irreversible.” The broader vision: to be the preferred bank for both inbound and outbound capital flows—across corporates, institutions, and wealth clients. From early-stage startups to late-stage IPOs, HSBC wants to stay in the conversation throughout the lifecycle. “We may not chase mass retail,” says Mishra, “but for global, institutional, and high-value flows—HSBC will be there”. If MSS powers the cross-border engine, investment banking is HSBC’s piston—bringing capital to strategy, and strategy back to capital. HSBC’s investment banking franchise in India, long steady but understated, is now visibly stepping up. Amitabh Malhotra, vice chairman-investment banking, says this resurgence is no accident. Over the past few years, HSBC has deliberately positioned itself as a cross-border powerhouse—strong in equity and debt capital markets, and a trusted partner for both global and domestic capital. “We’ve always had strength in debt and leveraged finance,” says Malhotra, a 30-year investment banking veteran. “But we’ve grown significantly in equity capital markets and M&A. What’s changed is our strategic clarity.” The year 2024 stood out for the bank. HSBC led the largest IPO—Hyundai Motor India—and generated the highest demand for the issue. “We stood out for the client,” he says. In today’s choppy markets, timing is everything. Malhotra stresses the importance of sequencing and market read. “By the time you reach RHP filing and investor feedback, even a small tailwind can improve valuation,” he notes. The same holds for bonds. “A couple of rate cuts during execution can materially shift economics—and the reverse, too.” This is where the banker’s role becomes more than transactional. “We’re not just intermediaries—we’re navigators. Our work is driven by what the market is telling us,” he says. “You can’t build books by playing to the gallery. That’s a fool’s paradise.” Despite volatility, deal activity remains high. “We’re still getting appointed, and we’re in the market with live issuances,” he says. In the first half of 2025, HSBC India has successfully closed seven equity capital markets (ECM) transactions, surpassing its entire previous year’s performance. On M&A, the bank plays to its global strength. “We don’t focus on India-India deals. Our value is in cross-border,” says Malhotra. Recent mandates include advising Enel on its India renewables exit and working on road asset consolidation. Infra and renewables remain hot, with global funds chasing stable, long-term yield. “Infra platforms, roads, renewables—investors like the predictability of returns,” he explains. Is this HSBC India’s strongest investment banking phase yet? “Yes,” he says. Nine of the year’s Top 12 deals had HSBC in the lead. “We’re pitching actively, hiring selectively, and building for permanence.” The momentum may be visible, but the foundation is deeper—rooted in the deliberate restraint that defines HSBC India. Dave’s mantra in banking is simple: discipline over dazzle. “In India, the temptation is to do everything. But we’ve seen foreign banks burn when they move away from their core,” he says. He points to 2014-15, when banks—foreign and local—were cutting billion-dollar cheques. “The Day-One fee can be $50 million, but there’s no cash flow after that. It’s the banker’s greatest weakness.” Instead, the focus is on building relationships, not one-off deals—across both wholesale and wealth. Execution, Dave believes, is the only moat. “If we fail in these 20 new cities, it won’t be because of policy—it’ll be on us.” He’s also realistic. “There’s room for one international bank of scale in India. I hope it’s us. But if someone else does better, so be it.” That optimism is striking in a landscape where peers such as Citibank have chosen to exit retail. According to Parthasarathy, decisions by foreign banks to reallocate capital from India to developed markets aren’t a reflection of a lost opportunity—but rather a shift in strategic focus. “India remains a high-potential market. For those willing to invest in personalisation and long-term relationships, the runway for growth is very promising.” The goal for HSBC isn’t just revenue—it’s relevance. “I’ll never have a top private bank’s market share. But ask Mastercard who swipes most internationally. Ask how many unicorns we bank. Ask who’s behind the FDI deals.” Dave isn’t focussed on scale—he’s pursuing permanence. “If I say we’ll grow at 14.32% CAGR, it’s not catchy. So, let’s put it this way: we want to do in five years what we couldn’t in the past 165.” Coming from the CEO of a foreign bank—a cohort long stereotyped for its hit-and-run model in India—Dave’s intent is grounded, but his ambition is equally audacious. Fortune India is now on WhatsApp! Get the latest updates from the world of business and economy delivered straight to your phone. Subscribe now.

HSBC’s India play: Bold expansion with discipline and global muscle

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