Swiss bank HSBC has decided to close its private banking unit in India, where the increasing number of wealthy individuals has led to intense competition for their business.

Clients will be given the choice to move to HSBC’s retail unit.

The future of the wealth management unit’s 70 staff will be decided early next year, when it is due to close.

The move follows the lead of RBS and Morgan Stanley, which have sold their onshore private operations in Asia’s third-largest economy.

Photo Reuters

Despite the growth in the number of multi-millionaires and a fast-growing wealth management market in India, it has been hard for foreign banks to attract business.

Indian companies can appeal to investors in small as well as large cities. They are not weighed down by high costs and international regulatory restrictions.

In June, HSBC CEO Stuart Gulliver announced the bank was going to cut thousands of jobs from its global workforce as part of his restructuring program.

Since taking over his role in 2011, Stuart Gulliver has sold scores of businesses and taken on more compliance staff to deal with the increased regulatory oversight of the industry.

An HSBC spokesperson in India said: “This marks further progress in the HSBC group strategy to simplify business and deliver sustainable growth.”

HSBC employs about 32,000 people in India, where it offers corporate, retail and investment banking services.