The Hindu Business Line : HSBC opens branch in Kochi

Speaking after the inauguration of the branch, Mr Niall S.K. Booker, Chief Executive Officer, India, said that the branch will provide the full bouquet of personal financial services and have an added focus on the large number of NRIs from the state.

Backed by a surging growth in the economy and capital markets, the growth of the banking sector in the country has been largely encouraging, more so in the southern states, he said. There has been a substantial surge in the inflow of dollars into the country and the Government is struggling to cope with this changed ground realities. The problem is assuming mammoth proportions and could turn out to be the country's biggest problem.

HSBC's latest BPO centre in Vishakhapatanam, is slated to commence operations from April 1, Mr Booker said.

There is sufficient scope for further reduction in interest rates. But falling interest rates should be accompanied by making the Securitisation Act fully effective. The lender is still not fully confident that he can recover the security without entailing civil and legal delays.

This has been another factor, which has added on to the cost of capital. Reduce the risk to the security and the cost of capital will automatically come down and the interest rates will fall further, Mr Booker said.

With the opening of the Kochi branch, HSBC has the widest coverage of South India, the highest among all foreign banks. Two more branches are planned, one at Chennai and another at Bangalore.