HSBC Announces Exit From US Retail And Small Business

HSBC announces an exit from US retail and small business, know the reason for this big announcement. HSBC has announced to exit the US retail and small business.

The company has taken this decision as part of a strategy to give renewed focus to corporate and investment banking in Asia.

A statement issued by HSBC said that its main focus is to meet the banking and wealth management needs of globally connected and high-net-worth clients.

HSBC is headquartered in London and the bank’s core business is focused on Asia.

HSBC will sell 90 in the US-based 148 branches to Citizens Bank and Cathay General Bancorp among others.

HSBC plans to transform 20 branches into international hubs. These international centers will be dedicated to people with higher net worth. The bank plans to gradually close 35-40 branches thereafter.

“They are good businesses, but we are not in a position to fulfill them,” HSBC Chief Executive Noel Quinn said in a statement.

“In this new chapter of HSBC’s presence in the US, teams will focus on our competitive forces and connect our global wholesale and wealth management clients to clients in other markets of the world,” he said.

HSBC said earlier this year that it wanted to restructure the US retail and small business operations.

According to a report by Les Echos, HSBC in France is set to pay over one billion euros to sell its entire retail banking to American fund Cerberus. The bank employs over 4,000 employees in 230 branches of the bank.

The company reported last month that its profit doubled in the first quarter.

The big news before the GST Council meeting, GST compensation amount may come down.

The big news is coming out a day before the GST Council meeting. The GST compensation given to the states may be reduced by Rs 2.69 lakh crore in the current financial year 2021-22.

To make up for this, a loan of Rs 1.58 lakh crore will have to be taken out of it. The Center hopes that the work will be done with a Cess of 1.11 lakh crore rupees.

This amount will be given as compensation to compensate for the decrease in revenue of states due to Goods and Services Tax (GST) implementation.

1.58 Lakh Crore Debt.

Under the GST regime, the remaining 1.58 lakh crore rupees of debt will be taken as promised to compensate for the reduction in revenue.

According to the agenda note shared with the states ahead of the GST Council meeting on Friday, though the Center expects to improve GST revenue in the current financial year.

There will be some difference between the need for compensation and the amount coming from CESS.