Banking giant HSBC on Thursday announced its decision to exit its retail broking business in India, a move that will result in loss of as many as 300 jobs.

The largest European bank also declared that had ceased opening new accounts in the retail broking space with immediate effect.

Announcing the move, HSBC said, "HSBC will cease opening new retail broking accounts with immediate effect.  Impacted employees will be offered a fair and equitable severance pay, in line with the company policy."

A source familiar with the company's decision said the decision to exit the business was taken because of tough competition and low earnings potential in the retail broking business.

Since Stuart Gulliver took over as CEO of HSBC at the start of 2011, the company has exited nearly fifty businesses worldwide, including its $2.1 billion Panama operations.

The brokerage industry of India is quite fragmented as well as competitive.  Sluggish growth and low commissions have forced hundreds of brokers to exit the market over the past few years.