Why HSBC bank announced closure from Indian private banking business

The HSBC bank announced the closure of its private banking business in India.

Unlike mass banking, private banking is the dedicated banking services for high net worth individuals (HNIs). So what could be the reasons for shutting shop when India is the only bright spot in the world???

 The following might be the reasons that led to the closure:

The Environment Of Stress: The Indian economy is  yet to see a big pick up despite being in the bright spot as India is more consumption-oriented than other emerging markets such as China or Brazil.

Competition:The private banking space is hugely competitive. Few decades ago, foreign banks had an edge in the private banking space because of quality service, global investment tools and an untapped market. 

·     Falling Returns: Look at the investment class from commodities, gold, equity,  to real estate. They are  already instances of HNIs losing big money because of bets going wrong. There is no hope of a major recovery in many of the asset classes. Take for instance, India despite being on bright spot is now witnessing any major moves in its stock market. In fact, the stock market has plunged from a high 30,000 in March this year to 26,000 levels.