HSBC Bank Terminates Over 300 Officers in a Single Day

As part of its plan to scale back operations in Bangladesh, the UK-based multinational banking giant HSBC has issued dismissal notices to more than 300 employees in one go. Even senior officials who have loyally served the bank for over 24 years were not spared from this sweeping decision.

The sudden move has left many employees in shock, with sleepless nights spent worrying about the uncertainty of their families’ futures. Those who were preparing for retirement in a few years are now compelled to restart their careers in a highly fragile banking sector, where securing a new job is proving to be extremely challenging.

Employees who have received termination notices are furious. They have already begun holding discussions with the authorities regarding their rightful demands, though many claim the management is showing little regard.

One officer at the bank’s Dhanmondi branch, who began his career with HSBC in 2001, revealed: “Possibly more than 300 employees have been given termination notices. We were told our last working day would be 31 March, though we can resign earlier if we wish.”

When asked about compensation, he said: “Different offers of facilities are being mentioned, but the management is unwilling to meet our formal demands. We plan to present them officially soon.”

On 17 August, while the officer was speaking to journalists at the Dhanmondi branch, anxious customers were repeatedly calling him. Even senior citizens visiting the cash counter expressed their deep concerns regarding the issue.

On 30 July, HSBC announced its decision to withdraw retail banking services from Bangladesh. Within days, employees were served with mass termination notices.

HSBC had launched its first branch in Dhaka in 1996. Currently, the bank operates:

Services under retail banking include:

• Personal accounts
• Car loans
• Home loans
• Insurance
• Fixed-term investments
• Personal financing

Both conventional and Shariah-compliant services were available. HSBC has now stopped enrolling new customers for these services and instructed existing account holders to withdraw their deposits at the earliest.

Financial Snapshot of HSBC Bangladesh (2024)

According to the bank’s financial statement, record profits were achieved due to higher loan interest income, reduced cost of deposits, and improved investment earnings. This has raised questions as to why retail banking is being discontinued despite such positive performance.

The closure of retail banking services is expected to cause:

• Inconvenience for general depositors
• Serious disruption for borrowers and students going abroad for higher education, since student loan files involve lengthy procedures that cannot be easily transferred to another bank midway.

Many are sceptical about whether the transition will be practically feasible at all.

HSBC has been embroiled in several controversies in recent years:

• In 2022, it shut down 114 branches in the UK, leaving many employees jobless.
• In Bangladesh, the bank once faced allegations of involvement in terror financing through its local branches.

When contacted, HSBC’s spokesperson, Ms. Nowrin Islam from the Public Relations Department, initially told the media: “These matters are confidential to the bank, and therefore we cannot provide any information.”

Later, despite repeated requests and even written queries sent by email, no further response was given.