In a move which may surprise many investors and clients alike, HSBC Holdings plc (ADR) (NYSE:HSBC) has just announced that they will be shutting down operations of their private banking unit in India.
“After a strategic review of the global private banking operations in India, we have decided to close the business,” An HSBC spokesman said. “This marks further progress in the HSBC group strategy to simplify business and deliver sustainable growth.”
For those who are currently using the service in India, they will now have the option to move to the HSBC Premier service, which is a global offering.The stock is up 0.10% or $0.04 after the news, hitting $40.2 per share. About 427,032 shares traded hands. HSBC has declined 15.82% since April 24, 2015 and is downtrending. It has underperformed by 14.46% the S&P500.
HSBC Holdings plc is the banking and financial services company. The company has a market cap of $157.97 billion. The Company’s principal activities include making payments, holding savings, enabling trade, providing finance and managing risks. It has 11.17 P/E ratio. The Firm operates in four businesses: Retail Banking and Wealth Management (RBWM), Commercial Banking (CMB), Global Banking and Markets (GB&M), and Global Private Banking (GPB).