HSBC eyes $1-bn profit before tax from India operations

Posted By: Religare
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HSBC eyes $1-bn profit from India
Taking note of the profit before tax earned by the British bank from its Indian operations around $700 million last year, Hong Kong and Shanghai Banking Corporation (HSBC) is also speculating its profit before tax from its business in India to cross $1 billion in the medium term.

HSBC India CEO, Davis regards Asia to be fuelling maximum amount of growth across the planet by evaluating an estimate of 8% growth in India"s Gross per capita Income for 2010-11 even though the country is mowed down by inflationary pressures.

“The economic prosperity is fuelling growth across segments — from large corporate to the increasing mass-affluent segment. We are well poised to leverage this growth and are confident we would be able to meet our group"s and shareholders" expectations," he said.

Naina Lal Kidwai, General Manager, HSBC India also gives her input on the confidence built in by India"s potential and performance apart from the Asia strategy of the group targeting the rapidly emerging markets.

In India, HSBC plans to focus on financing top national and international companies. The lender would also target the affluent Indian population overseas to increase its wealth management business.

Davis also views HSBC to be sharing its revenues in retail and commercial banking as the group is set to acquire Royal Bank of Scotland and their banking operations in India would give them an added strength. “The transaction is expected to be completed by the end of this calendar year, subject to regulatory approvals. It would help us increase our distribution in India," Davis said.

HSBC Chief Executive Officer (Asia-Pacific) Peter Wong said the bank would increase its presence in potential markets like India, Hong Kong, China, Singapore, Malaysia and Indonesia. The bank expects its profit before tax from its Asia business to cross $5 billion in the medium term. The profit before tax would be aided by the rise in pre-tax profits in India, Singapore, Malaysia and Indonesia.

The bank"s profit before tax is already over $1 billion in Hong Kong and mainland China, where HSBC is the largest foreign bank, with over 270 branches. In Hong Kong, the bank enjoys the largest market share in deposits, credit cards, mortgages and local bonds.

Read more about: bank, hsbc
Story first published: Monday, May 16, 2011, 9:30 [IST]
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