HSBC India is gearing up for significant growth with plans to expand its branch network, deepen its wealth management business, and enhance digital banking capabilities. Chief executive officer Hitendra Dave tells Sachin Kumar that the bank aims to grow at 1.5-1.8 times the country’s nominal GDP, leveraging its strong presence in transaction banking and international wealth management. Excerpts:
What are HSBC’s growth ambitions for the next three-five years?
Our growth targets are typically in the range of 1.5-1.8 times the nominal GDP, translating into an ambition of 15-18% annual growth in key business volumes. However, since HSBC’s market share in India remains relatively small, our growth is not directly tied to GDP trends. This growth target applies to transactional volumes rather than revenue or balance sheet expansion.
A significant advantage for HSBC is that our growth mirrors that of our customers. Whether in wealth management, mortgages, credit cards, MSME banking, large corporates, or foreign institutional investors (FIIs), we see strong demand. Our customers tend to have strong governance structures, access to quality clientele, and a global outlook. Even MSMEs in our portfolio engage in international trade, sourcing inputs from and selling products to overseas markets.
HSBC banks nearly 50% of the multinational corporations operating in India, 50% of the country’s unicorns, and nearly 2,000 startups. We are also the only bank with a dedicated $600-million fund for startup financing. Our balance sheet remains strong and liquid, allowing us to support clients through various market cycles. Given the robust expansion of our customer base, we expect our growth trajectory to consistently outpace the overall economic growth.
With HSBC set to open 20 branches, will there be a shift in focus?
Our core focus remains unchanged —serving clients with international financial needs and offering high-value services. Our branch network expansion aims to strengthen our presence in wealth management, international banking, and emerging industrial clusters. The new branches will enhance HSBC’s ability to bring global financial solutions to these locations, serving high net worth individuals (HNIs), non-resident Indians (NRIs), and businesses in key industrial and IT hubs. Our new branches will bring the globality of HSBC to the customers in new cities.
Our investment in digital capabilities ensures that clients in these cities experience world-class banking technology, whether in payments, trade finance, or wealth management. By focusing on top employers, industrial clusters, and key NRIs in these cities, HSBC aims to deepen relationships and grow its market share in targeted segments.
What is HSBC’s approach to loan growth and transaction banking?
Rather than targeting loan book expansion in isolation, HSBC prioritises transaction banking, which includes forex, trade finance, payments, collections, custody, and escrow services. Approximately, 10% of India’s exports are processed through HSBC’s platforms, and we handle 16% of foreign direct investment (FDI) flows into India. Our strategy is to be the top transaction bank in the region, leveraging our global reach and product expertise.
How does HSBC maintain a competitive edge in the wealth management space?
Our biggest differentiator is our international reach. As India’s wealth matures, many clients seek global asset diversification, estate planning, and cross-border financial solutions. While domestic firms excel in India, HSBC provides seamless international wealth management, helping clients structure investments overseas, particularly for families with members studying or settling abroad.
Additionally, HSBC enjoys a strong reputation for trust and reliability. Clients rely on us for informed, research-driven advice rather than aggressive product sales. Unlike pure wealth management firms, HSBC offers comprehensive banking solutions, including mortgages, credit cards, and transaction banking. This holistic approach allows us to serve clients in a more integrated manner, ensuring that their financial needs are met beyond just investment products.
How does HSBC plan to grow its deposit base, especially CASA deposits?
The traditional model of branch-based deposit mobilisation is evolving. Customers no longer open accounts solely based on locational convenience. Instead, HSBC focuses on transaction banking excellence, ensuring corporates use our platforms for collections, payments, salary processing, and trade finance. By embedding ourselves into clients’ financial ecosystems, we naturally attract deposits as a byproduct of our broader banking relationships.
For retail customers, differentiation is key. Competitive digital banking features, premium credit cards, and seamless international transfers provide compelling reasons for customers to bank with HSBC. Our approach is to create value for depositors rather than relying purely on interest rate competition.
HSBC has expanded its presence in GIFT City. What drove this decision?
HSBC launched its GIFT City branch in January 2021, and within four years, our balance sheet there has grown to $7 billion. Beyond the balance sheet size, we have also facilitated large-scale funding transactions through underwriting and syndication.
GIFT City provides unique advantages for Indian companies seeking foreign currency loans, given its regulatory and tax benefits. HSBC has been at the forefront of utilising this platform to offer working capital, trade finance, and term loans. As regulatory frameworks evolve, we continue to expand our offerings, including NRI banking, insurance solutions, and investment products. Currently, we are among the top three banks in GIFT City, reflecting our commitment to leveraging this emerging financial hub for our clients.
What are HSBC’s future plans for GIFT City?
Our ambition is to be the leading international bank in GIFT City. As regulations evolve, we are enhancing our product suite to include expanded NRI services, wealth management, and institutional investment solutions. Looking ahead, we will continue strengthening our presence in GIFT City by offering cutting-edge financial solutions, reinforcing our leadership position in India’s rapidly evolving financial ecosystem.
So, what will be the impact on your employee base with the opening of new branches? What are your hiring plans?
Initially, we will relocate some employees from our head office in Mumbai and other existing centres to ensure that customers receive the level of service and expertise they expect from HSBC. Our clients look for more than just a polished sales approach, they expect deep knowledge and competency. To maintain those standards, we will have experienced staff on the ground from Day 1. At the same time, we will also be making local hires, training them, and equipping them with the HSBC way of working. So, our expansion will involve a balanced mix of internal transfers and new local recruitment.
What is your outlook on economic growth and the factors influencing it?
Economic growth must be viewed in context. From FY22 now to FY26, we have witnessed a significant contraction in the fiscal deficit, from 6.7% to 4.4%. Historically, such a sharp reduction is rare, and it has implications for growth. Concurrently, monetary policy has remained tight, with interest rates held steady from February 2023 to February 2025. Liquidity conditions have been constrained, impacting credit flow and consumption.
The contraction of the fiscal deficit is inherently restrictive to growth. At the same time, monetary policy has prioritised inflation control.
Further, food prices, particularly fresh vegetables, have been inflating at double-digit levels, eroding the disposable incomes of lower-income groups. Rental costs have surged, affecting middle-class finances. These factors collectively constrained growth, but signs of relief are emerging. A strong rabi crop and lower vegetable prices in December and January suggest inflationary pressures may ease. Additionally, monetary policy is injecting liquidity, and while the recent Budget remains fiscally prudent, it includes tax cuts to support middle-class consumption.
With these factors aligning, GDP growth should see an upward trajectory. As the Budget’s effects materialise from April and potential monetary easing kicks in, growth could reach closer to 7%. Key contributors will include robust services exports, which are now generating net surpluses of $15-16 billion monthly and could soon outpace manufacturing exports. The MSME sector should also benefit from policy support and improved credit flow. With fiscal and monetary policies aligned, the banking sector supporting growth, and strong consumer and industry activity, a 7% growth target should be achievable in the medium term.