HSBC to adopt organic growth strategy in India
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.''
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