Global banking major HSBC today said India is one of its key markets for growth and profits from the country will cross the $1-billion mark in three years.
"We closed with a profit before tax of $671-million in 2010 and one would expect we will achieve the targeted growth number of $1-billion in three years...By 2013," HSBC Chief Executive for India Stuart Davis told PTI over phone.
The UK-headquartered bank had posted an impressive 82% jump in PBT in 2010 driven by a jump in credit off-take by corporates.
Earlier in the day, HSBC Chief Executive for the Asia-Pacific region, Peter Wong, said that the bank has identified five "billion-dollar" markets in Asia, including India, which will see a greater thrust going forward.
"As Asia's global bank, HSBC will cement our leadership in the region by growing aggressively in key markets," he said in an e-mailed statement.
The key drivers of growth in India will be the bank's global network, Davis said. "We expect a strong contribution from the global banking and global markets," he said, adding that the PFS or personal finance services and commercial banking divisions will also deliver better.
"Our competitive advantage comes from our international connectivity...We will be in a good position to help both inward and outward fund flows, especially when Indian companies are increasingly going abroad," he said.
On HSBC's initiatives in expanding branch network in India from 50 at present, Davis said the bank is not seeking to open any new branches by itself but will be counting on the acquisition of RBS' retail and commercial banking network to grow its presence.
Davis said, subject to regulatory approval, he expects the acquisition -- announced in June last year -- to be complete by end-2011. As a part of the deal, HSBC will get 31 branches from RBS.
He said HSBC has made a submission to the Reserve Bank seeking more clarifications on the foreign bank licences issue but, "on balance", finds the adoption of wholly-owned subsidiary route "favourable" though it has certain challenges like lending to agriculture and other priority sectors.
RBI had invited suggestions from stakeholders by March 7 and is expected to come out with revised guidelines on foreign banks' operations in India soon.
On the consumer banking side, Davis said HSBC will ramp up its unsecured lending presence through products like credit cards, which had been slow during the slowdown years.
However, the bank is interested in growing organically in this area and will not be bidding for credit card business selling mandates floated by some of its peer foreign banks, Davis said.
