Mumbai, Dec 13 (UNI) The Hong Kong and Shanghai Banking Corporation (HSBC) will adopt an organic growth strategy in India for its commercial banking operations, according to HSBC Chief Executive Officer Sandy Flockhart.
The CEO, who is on a visit to India to review the Bank's operations, said, ''Banking environment in emerging markets in India is still restrictive and we will follow an organic path in terms of growth.'' However, he added that India offers high growth potential and the demand for banking is going to increase as the country has the largest young middle class population.
Presently, HSBC, which has operations in 82 countries world-wide, has an investment to the tune of USD 1.7 million in its India operations.
''Our thrust areas will be on middle market enterprise, SME and derivatives in future,'' Mr Flockhart added.
He pointed out that by 2009 when the banking sector opens up in India there will be a huge difference in the banking environment.
The Bank will recruit 5,000 people in the current fiscal year.
He informed that India is among the top ten contributors to the Bank's revenue.
When asked about the restrictions put on the FII inflows in the country and how is it going to affect the Bank's business which has 40 per cent of deposits from FII, he replied, ''In fact the issuance of p notes is working in our favour as more and more FII's are registering its a net-net gain for us.'' UNI AD NM VKG1835