Armed with new RBI approvals, HSBC India's Hitendra Dave wants a seat at the big banks' table

In a strategic move signaling ambitious growth plans, HSBC India, under the leadership of CEO Hitendra Dave, is poised to significantly expand its footprint in the Indian market. Armed with recent approvals from the Reserve Bank of India (RBI) to open 20 new branches, Dave is aiming to position HSBC among the top five private sector lenders in India. This expansion marks a notable shift in strategy for the bank, which had previously reduced its physical presence in the country.

Dave, who assumed the role of CEO in June 2021, has been instrumental in driving HSBC India's renewed focus on growth and expansion. With nearly 30 years of experience in the Indian financial markets, including a long tenure with HSBC, Dave's leadership is seen as key to maximizing the opportunities in the dynamic Indian market.

The approval to open 20 new branches represents the most significant branch expansion permitted to a foreign bank by the RBI in over a decade. This move will more than double HSBC's branch network, extending its reach from 14 to 34 cities across India. The new branches will target affluent customers in emerging industrial hubs such as Surat, Visakhapatnam, Ludhiana, Indore, and Nashik, catering to their premier banking needs. These locations were selected to capitalize on growing affluence, expanding industrial clusters, flows from overseas Indians, and burgeoning startup ecosystems. The bank has been given four to five years to establish operations in all the approved locations.

HSBC's expansion strategy also includes a focus on providing comprehensive services to its clientele. The bank aims to leverage its international presence and expertise to serve professionals and businesses with global aspirations. This includes offering bespoke financial solutions and services tailored to the unique needs of affluent individuals and private banking clients. In line with this strategy, HSBC has recently launched new credit cards, HSBC Taj and HSBC Prive, specifically targeting luxury and private banking customers.

Beyond branch expansion and tailored services, HSBC India has also been actively pursuing inorganic growth opportunities. In 2022, the bank acquired L&T Mutual Fund, further strengthening its position in the Indian financial services sector. Additionally, HSBC relaunched its private banking business in India in 2023, underscoring its commitment to serving the high-net-worth segment.

At the CNBC-TV18 Global Leadership Summit 2025, Dave highlighted India's strong economic growth, political stability, and low inflation, calling the country a "shining beacon" amidst global economic uncertainty. He acknowledged the cautious approach of foreign direct investment (FDI) due to global factors but emphasized that India continues to attract significant attention from foreign firms exploring listing and investment opportunities.

HSBC's renewed focus on the Indian market reflects its confidence in the country's growth potential and its strategic importance to the HSBC Group. India is the third-largest profit contributor for HSBC, after Hong Kong and mainland China. By expanding its presence, enhancing its service offerings, and leveraging its global network, HSBC India aims to solidify its position as a leading player in the Indian banking landscape.