HSBC invests Rs 904 cr in India operations

This follows an infusion of $150 mn in March '05.

The Hongkong and Shanghai Banking Corporation (HSBC) today infused fresh capital to the tune of $200 million (Rs 904 crore) into its India operations to support business expansion in the high-growth economy. This follows an infusion of $150 million in March last year.

With this additional investment, the British bank's capital base in the country has grown to Rs 4,909.5 crore from Rs 4,001.3 crore at the end of March this year.

HSBC's capital adequacy ratio, which stood at 10.6 per cent at the end of March, would go up to almost 13 per cent, computed on the asset base of March 2006, said Anurag Adlakha, chief financial officer, HSBC India. In March, the bank's asset base was Rs 37,500 crore.

"Last year, the growth in assets was 35 per cent. We are seeing a similar growth this year too," he said.

The capital will be used to support the bank's growth in the country.

"The last infusion took us through a year and a half. This will take care of our immediate needs," a senior bank official said.

The bank's tier-I capital at the end of March 2006 was 9.80 per cent and tier-II capital 0.81 per cent.

Its capital adequacy fell to 10.61 per cent at the end of March this year from 14.03 per cent in March 2005.

At present, HSBC India has 46 branches spread across 26 cities in the country.