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HSBC thinking big in Internet banking

Our Bureau

BANGALORE, April 20

HONGKONG and Shanghai Banking Corporation Ltd (HSBC)

is considering a second fund, maybe double the amount of its previous fund, the $60-million HSBC Private Equity Fund, according to the CEO of the bank, Mr. Zarir Cama.

HSBC Private Equity Fund has taken a stake in various companies, including an investment of $2 millions in the Internet service provider, Dishnet, as a first step towards its Net banking initiative.

Internet banking is very much on the cards though the bank is going slow and steady on it. A global product launch is expected to be announced in November. ``You may ask if we are late, but we are not,'' Mr. Cama told a news conference here on Thursday.

The bank plans to get into Internet banking in a big way and by November this year, customers will be able to access all the products offered by the bank on the Net. The Internet product will give customers access to their accounts from any place in the world through various devices, including the telephone, Internet, and mobile phones.

In the next phase, the bank proposes to look at providing a B2B platform for importers and exporters, which will be in place by the second quarter of next year.

The bank is talking to a few companies for an alliance for online trading. Its stockbroking arm, HSBC Securities and Capital Markets India Private Ltd, an institutional broker at present, is looking at entering the retail segment and is likely to be the channel for online trade too.

The Foreign Investment Promotion Board has cleared the bank's proposal to set up an asset management company. This will be through by the third quarter this year and a ``host of funds led by market demand'' are expected to be launched. ``However we will continue to sell third party funds,'' said Mr. Cama.

For the wealthy clients

THE HSBC CEO, Mr. Zarir Cama was here to introduce HSBC's private banking service in the city.

Private banking, which offers advice, execution and custodian services to individual customers on managing their wealth, was first launched in Mumbai in January 1999 and later in Delhi. The service will be offered to clients who wish to manage finance po rtfolios of Rs. 75 lakhs and above.

While this service comes at a fee depending on the amount and nature of investments, private banking customers will get to use some of the bank's other products free of charge, said bank officials.

At a later stage the service might be extended to managing other forms of individual wealth such as gold and real estate.

The private banking service will be launched in Calcutta on May 5. ``We are looking at assets worth at least Rs. 100 crores under administration in each of the cities that we are introducing it,'' said Mr. Cama. Mumbai and Delhi put together, assets unde r HSBC's administration are to the tune of Rs. 600 crores.