(Image source from: HSBC Holdings’ private banking unit to close in India})

As a part of group strategy, HSBC Holdings is in the edge of closing its private banking unit in India. This marks the exit of another foreign bank from the wealth management business in India, the third-largest economy of Asia.

A Mumbai-based spokesman said that the bank would offer the choice to move to HSBC Premier to private banking clients. HSBC Premier is the bank's global retail banking and wealth management platform. It is likely that the process would be completed in the first quarter of 2016.

The spokesman said, "After a strategic review of the global private banking operations in India, we have decided to close the business. This marks further progress in the HSBC group strategy to simplify business and deliver sustainable growth."

Banks like Royal Bank of Scotland (RBS.L) and Morgan Stanley (MS.N) recently sold onshore India private banking units as part of their global business restructuring.

Private banking business of HSBC in India has nearly 70 staff, said a source with direct knowledge of the development, adding that most would be redeployed to other bank operations. HSBC employs nearly 32,000 people in India. Most are in its back-office outsourcing unit. In India, HSBC offers corporate, retail and investment banking services.

-Sumana