In a statement, HSBC described the sale of its 4.73% stake in India’s third-largest non government bank, Axis Bank., for around $329m, and a 4.74% stake in the smaller Yes Bank for around $96 million as the disposal of “non-core investments”.
HSBC, which continues to run a bank and other financial services in India, also stated that “India remains a priority market.”
The sale of these two stakes appear therefore to be more in the context of an investment decision and releasing profits for use elsewhere rather than in HSBC’s overarching plans to scale back or exit from selected regional operations around the world.
HSBC chief executive Stuart Gulliver revealed plans last April to eliminate 30,000 jobs globally by the end of 2013, as part of an effort to improve efficiency. It cut almost 7,000 jobs last year, in such markets as Hong Kong, the US, Brazil, Canada and Mexico, and in April said it will reduce its UK workforce by 2,217 by the end of next year.
