Financial Daily from THE HINDU group of publications
Tuesday, Dec 02, 2003
Financial Daily from THE HINDU group of publications Tuesday, Dec 02, 2003 |
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Money & Banking
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Foreign Banks HSBC to invest more in India Our Bureau
Mumbai , Dec. 1 HONGKONG and Shanghai Banking Corporation Ltd (HSBC) seems to be extremely bullish on India. Mr Michael R.P. Smith, CEO Designate, HSBC, on Monday said the bank would be making more investments in India. It was also willing to relax its criteria of having a controlling stake in the potential acquisitions. "We have been growing organically in India. But there are limitations. We are looking for opportunities not only in banking but also in other financial services such as asset management and non-banking financial services," Mr Smith told media persons here. HSBC, which has launched its mutual fund business a year ago, has over Rs 3000 crore assets under management. This is an area where the group is looking for expansion through acquisition. Mr Smith, slated to take over as CEO by end of December, is currently on a familiarisation visit to this country. When asked about the voting right restrictions of shareholders in Indian banks, Mr Smith said, " We have to be realistic and respect the local regulations. We can have smaller holdings in one or two entities." However, as far as insurance business is concerned, the bank is for having a majority promoter stake. Mr Smith said India is second most important Asian market for HSBC after China, where the bank is planning to expand. China is developing faster than India. But he said there were several positive signs of growth in India including the current uptrend in the stock market. Currently Indian operations contribute around one per cent of the HSBC's global income. Mr Smith said there was scope for this to improve in the near future. The HSBC group has major investments in software and BPO ventures in India. The bank will be strengthening these centres and is likely to transfer more back office operations of the bank to India in the future.
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