The closure may result in around 70 job losses. However, the decision regarding the job cuts will be taken early next year, BBC reported.
This comes after RBS and Morgan Stanley have closed their onshore private operations in the region.
Royal Bank of Scotland and Morgan Stanley have also divested their private banking units in India, The Hindu reported.
HSBC India spokesperson was quoted by Reuters as saying: "After a strategic review of the global private banking operations in India, we have decided to close the business.
"This marks further progress in the HSBC group strategy to simplify business and deliver sustainable growth."
Several foreign wealth managers have paved their way quickly into India and expanded their operations. Despite strong economic growth and growing multi-millionaires, foreign wealth managing firms have failed in doing business in India.
HSBC will give its clients the option of shifting from private banking unit to retail unit.
With over 32,000 employees, HSBC offers corporate, retail and investment banking services in India.
Headquartered in the UK, HSBC is said to be the world’s fourth largest bank by total assets, with total assets of US$2.67 trillion.
