In hsbc can we do like this that 1 week go continuously office and then can go home for diwali? As it is 2 day wfo so can we do like that or need to take leave?

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No.. weekly attendance

The norm has been 8 days in a month as you stated. Not sure if this has now become 2 days a week strictly.

Then we need to take 4 leaves if we want to go home for 2 weeks ?

If you take leave for a full week, then in my opinion that week should not be considered while counting office attendance, because it is paid leave after all. But again I don't know the exact policy or where to find that

What about location tracking, how often do they check this?

I saw my friend working in Barclays (similair to Hsbc like bank) they have 2 days wfo and that friend goes 2 full weeks first and then goes hoen doing wfh for rest of month

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