The London-headquartered banking giant has been warned by Indian tax authorities over allegedly helping tax evaders.

Indian tax authorities have issued notices to HSBC warning of prosecution against its Swiss and Dubai businesses for allegedly abetting tax evasion by four Indian individuals and/or families.

The bank, which last week decided against shifting its headquarters to Asia, said in its recent results statement that it was first issued summons in February last year from Indian tax authorities and that it later received further notices in August and November. These alleged “sufficient evidence” to initiate prosecution against HSBC Swiss Private Bank and its Dubai entity.

“HSBC is cooperating with the relevant authorities...There are many factors that may affect the range of outcomes, and the resulting financial impact, of these investigations and reviews, which could be significant,” the bank said.

“In light of the media attention regarding these matters, it is possible that other tax administration, regulatory or law enforcement authorities will also initiate or enlarge similar investigations or regulatory proceedings.”

On Monday, HSBC revealed it was under scrutiny by various authorities around the world, including in Belgium, France, Argentina and India, over allegations of tax evasion or tax fraud, money laundering and unlawful cross-border banking solicitation. The bank said it was cooperating in investigations by the US Department of Justice and Internal Revenue Service over whether certain HSBC companies and employees, including those associated with HSBC Private Bank (Suisse) and an HSBC company in India, acted appropriately in relation to some clients who had US tax reporting obligations. 

It is also currently being investigated by the US Securities and Exchange Commission over hiring practices in the Asia-Pacific region.

Last month, the UK's Financial Conduct Authority revealed it had ended its investigation into HSBC over allegations that its Swiss private bank helped wealthy clients dodge tax.

HSBC reported on Monday that its private banking arm generated a net operating income of $2.172 billion for last year, against $2.377 billion a year earlier.