The Hindu Business Line : India important market: HSBC

Mumbai March 15 HSBC India is now among the top 10 contributors to the group's global business and recorded the fastest growth among the emerging markets. HSBC India's profit grew at about 85 per cent last year. "No market is more important to us than India. There is a lot of optimism, enterprises are doing well and as far as the bank is concerned, India is an important market for us," said Mr Stephen K. Green, Group Chairman, HSBC Holdings Plc.

HSBC had recently entered into an MoU with Canara Bank and Oriental Bank of Commerce for establishing a life insurance company. It holds 26 per cent stake in the venture. "We have experience in the insurance business and the public sector banks have their network," said Ms Naina Lal Kidwai, Group General Manager and Country Head-HSBC India.

About 10 per cent of HSBC's global business comes from insurance. It is distributing Tata AIG general insurance products in India and has around 47 branches in the country and opened four branches last year.

Wide presence throughout the world has helped the bank in India to replicate certain business models. For instance, the remittances product offered by the bank in India has been inspired by a similar product used in Mexico.

"HSBC's main focus will be on organic growth and emerging markets," Mr Green said.

Retail banking is a renewed thrust for the bank and we are being noticed, said Ms Kidwai. "In the area of consumer finance, the bank is writing around 10,000 loans in a month through HSBC Paragati Finance," she added.

The bank has also updated its NBFC (non-deposit taking and specifically for consumer loans) application with RBI.

When asked about RBI's move to eventually relax the regulation for foreign banks after 2009, Mr Green said, "We do and develop business according to the prevailing regulatory and policy framework. We are not waiting for any date. We invest our profits in India and will look at the opportunities."

Talking about the global banking system, Mr Green said increased competition has translated into some pressure on margins. He also said the housing market in the US is not quite stable and everybody expects the US economy to slow but there are different views on the same.

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