Mumbai: HSBC Holdings Plc will shut its private banking business in India, a spokesman said, marking the exit of another foreign bank from the cut-throat business in Asia’s third-largest economy.

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

Many foreign wealth managers had scrambled to open up shop in India a few years ago and aggressively ramped up operations to take advantage of robust economic growth, only to find themselves struggling.

Even though India’s economy has been minting millionaires at a strong pace, it has failed to translate into profits for the foreign wealth managers that have set up teams of well-paid bankers to help manage those riches.