The Hindu Business Line : India growth story strong

Chennai, March 17 The India growth story is still strong, notwithstanding global uncertainties and some confusing numbers like last month’s IIP (Index of Industrial Production), said Ms.Naina Lal Kidwai, Group General Manager and Country Head, HSBC India.

She was speaking to a group of journalists at the offices of The Hindu Business Line in Chennai.

Asked about the prospects of a slowdown in the backdrop of the systemic growth of bank loans at 22% compared to 30% previously as well as the poor Index of Industrial Production numbers, she said the IIP statistic was still only one month’s number. Sounding upbeat about the bank’s performance, she said, “I see no sign of any slowdown. The economy is buoyant and the top companies whom we deal with don’t show any signs of slowdown.”

Ms Kidwai said that she expected interest rates to remain flat for now and may be go lower in the medium to long term.

The domestic economy remains buoyant despite uncertainties at the global level and this was a good time to invest in the stocks of many world class companies in the country, she said.

Ms Kidwai clarified that a bulk of the bank’s India corporate business (about 60%) gets done offshore.

She said that India currently occupies the fourth spot after United Kingdom, Hong Kong, France in the HSBC group’s global business generated.

While saying that the demand for the bank’s personal loan products remained undiminished, she expressed concern at some of the developments in the general borrower behaviour following the controversy about recovery methods.

She said, “the bank was watching the collections space closely and would take a view about the business after some time.”

She said that HSBC’s insurance joint venture with Canara Bank and Oriental Bank of Commerce was expected to take off before the end of 2008.

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