HSBC India CEO on Growth, Wealth Management, and Corporate Banking

In an exclusive conversation with Moneycontrol, HSBC India CEO Hitendra Dave shared insights into the bank's trajectory and future ambitions. Highlighting the importance of wealth management alongside international and corporate banking propositions, Dave expressed confidence in HSBC India's ability to rank among the top five private banks in scale, even as it maintains its identity as a global bank. Below are some edited excerpts from the interview.

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HSBC India’s Performance and Contribution

How has HSBC India performed this year?

India's banking system is currently experiencing robust growth. As Warren Buffett famously said, "It's only when the tide goes out that we see who's swimming naked." At present, while microfinance and unsecured loans have led to credit losses, these remain manageable. Some banks have struggled with deposit growth relative to credit growth, a challenge partly tied to tight liquidity.

India offers immense opportunities, which can sometimes tempt one to overextend. However, the executive management at HSBC India has remained focused on its core strategy—targeting clients where the bank can provide unparalleled value. This includes globally connected individuals and corporations, such as families sending children abroad for education or companies setting up international operations. Our wealth and premier offerings remain industry-leading.

Impact of Citi’s Exit from India

Has Citi’s withdrawal from India’s retail market opened doors for HSBC?

HSBC India is uniquely positioned to cater to NRIs relocating to India and Indians seeking to expand or manage wealth abroad. Unlike aggressive sales-driven teams, HSBC focuses on building multi-generational relationships. Irrespective of other banks' decisions, the growing demand for international banking services and wealth management presents significant opportunities for us.

Our acquisition of the L&T mutual fund business, now operating as HSBC Mutual Fund, has been a notable success. I encourage stakeholders to compare our fund performance with competitors to appreciate its strength. This complements our wealth, international, and corporate banking franchise, solidifying our aspiration to scale up to the level of top private banks in India.

Regulatory Challenges in India

Is regulatory compliance overly burdensome in India?

HSBC operates in over 60 countries, each with unique regulatory requirements. We recognize that global templates cannot simply be imposed across all regions. HSBC’s long history of avoiding bailouts—a distinction from several high-profile banks—reflects its commitment to prudent governance and regulatory adherence.

Corporate Banking Outlook

How is the corporate banking sector performing?

Effective customer selection is critical. While businesses may face fluctuations in their cycles, governance must remain consistent. We partner with companies we can trust, offering comprehensive banking services to their employees, vendors, and distributors. HSBC’s position as the largest corporate bank globally and a leader in trade finance underscores our strong performance in this sector.

Ensuring Ethical Wealth Management Practices

How does HSBC address concerns about high-value clients and ethical practices?

Cultivating the right culture is paramount. As CEO, I prioritize setting and reinforcing ethical standards. We reject any business that compromises HSBC’s core values. Unlike firms focused on individual product sales, our approach is holistic, emphasizing long-term relationships, service quality, and customer satisfaction.