HSBC will begin phasing out its retail banking operations in Bangladesh in the second half of this year, a process expected to take six to eight months. The decision follows a review of its retail operations and is in line with the HSBC Group’s global strategy, HSBC Bangladesh announced in a statement.
As part of the exit plan, the bank has already stopped accepting new retail customers and will work to ensure a smooth transition for existing clients. HSBC’s Corporate and Institutional Banking (CIB) operations in Bangladesh will remain unaffected.
The bank is focusing on its core markets and wealthier “premier” customers, a strategy also seen in its reviews of retail businesses in Australia, Indonesia, and Sri Lanka. HSBC Bangladesh’s retail division had been profitable, recording a 9% year-on-year increase in profit to nearly Tk 1,100 crore in 2024. Deposits grew 3% to Tk 22,695 crore, while loans fell 18% to Tk 18,927 crore during the same period.
HSBC has assured that staff affected by the retail exit will be given priority for redeployment in other divisions, such as corporate banking, if their skills match available roles.
The bank opened its first office in Dhaka in 1996 and provides services including global payments solutions, trade services, treasury, and custody and clearing.
What Customers Need to Do
Customers have been advised to start transferring their accounts, loans, and deposits to other banks as soon as possible. HSBC will waive all related charges and provide the necessary documentation to ease the transition.
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Loans: Customers with home or personal loans should transfer them to other banks within 90 days.
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Deposits: HSBC will stop all auto-renewals of term deposits and encash deposits maturing after November (local currency) and December 2025 (foreign currency) early at a pro-rata rate.
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Debit Cards: Cards will be deactivated once accounts are closed.
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Bonds and Sanchayapatra: Customers must provide alternate bank account details for updates in the Government Bond Portal or visit branches for transfer arrangements.
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Non-Resident Accounts: Non-resident customers have until December 2025 to move their accounts and bonds.
Salary account holders are advised to coordinate with their employers for the transition, while student file holders will receive full documentation support at no extra cost.
HSBC will post updates on its website and communicate major changes via email or post.
This closure follows other global exits by HSBC, including the sale of its retail operations in Bahrain earlier this year, as the bank continues a worldwide restructuring to sharpen its focus on key markets.
