HSBC is closing its private banking arm in India, where the increasing number of wealthy individuals has led to intense competition for their business.

Clients will be given the choice to move to HSBC's retail arm.

The future of the wealth management unit's 70 staff will be decided early next year, when it is due to close.

It follows the lead of RBS and Morgan Stanley, which have sold their onshore private operations in Asia's third-largest economy.

Despite the growth of multi-millionaires in India, it has been hard for foreign wealth managers to attract business.

An HSBC spokesperson in India said: "This marks further progress in the HSBC group strategy to simplify business and deliver sustainable growth."

The bank employs about 32,000 people in India where it offers corporate, retail and investment banking services.

(BBC)