HSBC's decision to shut its retail banking operations in Bangladesh has triggered deep uncertainty and resentment among staff, with nearly 300 facing dismissal by March next year.
The global banking giant announced on 30 July that it would no longer accept new retail clients and would gradually close existing accounts by December.
While the bank insists the process will be "phased" over six to eight months, employees say they were blindsided by the announcement and left without a clear plan for their futures.
In one early morning e-mail, staff learnt that their unit was being dismantled. Later that day, HSBC Bangladesh's management convened an internal town hall meeting, which several employees described as chaotic and distressing.
"They just said the business is closing-no details, no plan, no guidance-just a promise to tell us later," said one distraught officer. Some employees reportedly collapsed from shock and had to be hospitalised.
The bank has since begun one-to-one sessions with staff, offering severance strictly under Bangladesh's labour law. Employees complain that the packages are far smaller than what HSBC has provided in other countries, or even in past retrenchments in Dhaka.
In 2011-12, HSBC offered staff either redeployment in another unit or the equivalent of five years' salary. In contrast, the current proposal amounts to little more than the legal minimum. "They have destroyed our future," one official said.
Behind the numbers are human stories of anxiety and despair. Many of the affected employees are mid-career professionals aged between 30 and 50, supporting families, paying mortgages, and covering school or university fees.
HSBC's preferential loan schemes, once considered a benefit, have now become a burden. "We took home loans at low interest because we trusted our employer," one staff member explained.
Female employees, many of them single mothers or primary breadwinners, face particular hardship. Staff also report a surge in stress, depression, and panic attacks since the announcement.
HSBC Bangladesh's CEO, Mahbub-ur-Rahman, declined to comment, referring all queries to the public relations department. In a brief statement, the bank said: "The process of closing retail banking will be completed in six to eight months. We do not share details of employee compensation."
The closure of a profitable unit-HSBC's retail operations recorded US$ 11.7 million (Tk 143 crore) in profits in the first half of this year-has raised questions about the bank's long-term commitment to Bangladesh.
