HSBC has announced plans to wind down its retail banking operations in Bangladesh in phases starting from the second half of 2025, in a strategic move aligned with the global group’s portfolio optimisation.

In a statement issued Tuesday, HSBC Bangladesh confirmed that it will stop onboarding new retail customers with immediate effect and work towards a structured transition for existing clients. The decision follows a comprehensive review of the bank’s retail footprint in the country.

The bank’s Corporate and Institutional Banking (CIB) division, however, will remain unaffected. HSBC emphasised that Bangladesh continues to be a key market for its institutional business, particularly in facilitating cross-border trade and investment. “The Bank recognises the importance of Bangladesh to its corporate and institutional clients and continues to invest in the CIB business,” it said.

This move aligns with HSBC Group’s global strategy announced in October 2024, which aims to consolidate operations and prioritise markets offering higher growth potential. The bank has been retreating from select retail markets in recent years, including similar exits from France, the US, and New Zealand, as part of an effort to strengthen its core businesses.

While HSBC did not disclose how many customers or branches would be affected by the transition in Bangladesh, it assured that existing retail clients would be supported throughout the winding-down process.

HSBC has operated in Bangladesh since 1996 and is among a small number of foreign banks with a significant institutional footprint in the country.