The Hindu Business Line : HSBC plans to realign business mix

While corporate banking accounts for an overwhelming part of its overall business, the bank intends to focus more on the other segments in order to achieve a better mix.

Ms Naina Lal Kidwai, Group GM and Country Head, said that the bank is looking at a situation where corporate banking accounts for just about 50 per cent, with the rest coming from other areas.

"The idea is to concentrate on businesses that have significant growth potential. These are likely to assume bigger proportions in the days ahead," she told newspersons while referring to HSBC's exposure to trade finance, consumer finance, personal financial services and the like.

The bank, which has to contend with the Reserve Bank of India's norms on the opening of new branches, will scale up its presence in a graded manner to the extent possible. It currently has 47 branches in 26 cities.

HSBC accounts for over 50 per cent of the foreign equity investments held in custody.

Its engagement with the securities regulator, therefore, was quite strong, said Ms Kidwai, adding that the bank had seen 30 per cent plus growth in asset base, while net profit saw significant growth in 2005-06.

Within the entire HSBC Group, the Indian operations at the end of last year were the 16th largest contributor to profits. In the first half of the current year, it was the 10th largest.

About $300 million is expected to be contributed to Group income by end-2007.

The bank's newly launched service, Pragati Finance, is expected to pay handsomely.

On the credit cards front, HSBC has about 1.8 million cards in force. The bank's asset management business has witnessed significant growth in recent years.

B-school for women

Meanwhile, HSBC has forged an association with what may well be the first business school for women, courtesy its link with Maandeshi Mahila Sahakari Bank, one of its microfinance partners, said Ms Kidwai.

The bank has signed up a number of microfinance institutions, including SKS Microfinance (whose founder Mr Vikaram Akula was recently named one of the world's top 100 most influential people), Share and Spandana.

These institutions, already seen as making a difference to the lives of many marginalised people, are expected to play a greater role in terms of financial inclusion.

The institutions associated with HSBC cover five States, including West Bengal.

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