HSBC India profit up 20% on strong growth in commercial biz

Our Bureau Updated - November 15, 2017 at 11:11 PM.

hsbc

HSBC's India operations reported a profit before tax of $813 million for the year ended 2011 — 20 per cent higher than the $679 million in the previous year. The growth in profit was on account of the improved performance of the retail banking segment where losses declined substantially and strong growth in commercial banking, said Mr Stuart Davis, Chief Executive Officer, India, HSBC.

Decline in losses

The losses in retail banking and wealth management declined to $14 million as on end-December 2011, from a loss of $83 million in 2010. Commercial banking grew to $122 million, from $71 million in the previous year. Global banking and markets increased to $539 million ($508 million).

There was a slowdown in credit demand, especially in the second half, which is reflected in the loan growth. That, along with the weakening of the rupee, led to a decline in loan growth, Mr Davis said.

The gross loans and advances declined to $6.01 billion ($6.70 billion).

Within that residential mortgages fell to $830 million ($920 million), property related loans increased to $809 million ($680 million), commercial and international trade fell to $3.91 billion (4.58 billion).

For 2012, credit growth is likely to follow a similar trend, at least in the first half, Mr Davis said. “Hopefully after elections we will see more policy decisions coming through, which will lead to improvement in growth,” he said.

In 2011, the cost of funds rose as a result of interest rate increases and de-regulation of savings bank rates, Mr Davis said.

At on December 2011, the number of HSBC employees in India were 32,000. priyan@thehindu.co.in

Published on February 27, 2012 16:37