HSBC to cut jobs in India

Hongkong and Shanghai Banking Corporation is likely to cut jobs in India, as part of its plan to lay off 30,000 employees globally, according to sources.

The move is aimed at reducing costs and improving efficiency.

While the exact number of people who would be asked to leave is not known yet, as the restructuring would begin in January, sources said most of the layoffs are likely to take place in the commercial banking business.

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An HSBC spokesperson confirmed there could be some impact in India because of restructuring of the bank's global operations.

"HSBC is going through an efficiency programme globally, as was set out by the HSBC Group chief executive, Stuart Gulliver, at the Investors' Day in May. All businesses across the world are undergoing a strategic review, and India would not be left out of this," the spokesperson said.

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"A variety of roles may be impacted.

But we have been clear India remains a key market, and we would continue to invest in our businesses here, as we sharpen our strategic focus on financing the country's top domestic and international companies and supporting its economic growth," she added, declining to offer more details.

According to data available with the Reserve Bank of India, the foreign lender had 6,373 employees and 50 bank branches in India as of March.

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Earlier this year, HSBC said it had cut 5,000 jobs in Latin America, the United States, Britain, France and West Asia, and aims to reduce another 25,000 by 2013.

In India, the bank has re-allocated over 100 officials in different departments, but has not cut jobs so far.

In the first six months of this year, the bank's profit before tax rose 33 per cent from a year ago to $451 million, driven by growth in the commercial banking and global banking and markets businesses.

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HSBC has set a pre-tax profit target of $1 billion from its India business in the medium term.

India is currently the bank's third-most profitable market in the Asia-Pacific region after Hong Kong and China, and sixth in the globe.

The bank is currently awaiting RBI's clearance for its proposed acquisition of the commercial and retail banking businesses of Royal Bank of Scotland in India.