The bank admits the share of revenues from Gujarat so far has not been much due to its presence in just two cities. But, this is expected to change soon with the launch of the new service.

Through commercial banking, HSBC is expecting a business of $5-10 million (Rs 20 crore to Rs 40 crore) in Gujarat by the end of the calender year.

"Gujarat is an important market for us. We will be targeting industrial clusters in Ahmedabad, Vadodara, Surat, Ankleshwar and Surat in Gujarat," said Puneet Chaddha, head of Commercial Banking, HSBC.

Nearly 20 per cent of HSBC's revenue comes from commercial banking, a sector which the bank is expecting the fastest growth in the next few months. "Commercial banking nets HSBC a business of nearly $200 million and a growth of nearly 60 per cent is expected from it," said Chaddha.

At its branches in Ahmedabad and Vadodara, the bank will provide services like multi-currency business accounts, payments and cash management, trade services and borrowing solutions. For SMEs, the bank will offer import and export collections, forex spot, forwards and options, internet banking, escrow accounts, factoring accounts, financing options, loans against property, home loans and business credit.

The bank is looking at a model in Gujarat on the lines of its ‘e-dairy' card pilot project with the government of Haryana where it has digitised milk procurement between sellers and milk federations.

"Our e-dairy pilot test was rated successful by the Haryana government. With a digital partner, we are looking to set up a similar agri procurement model in Gujarat for which we will soon talk to the Government of Gujarat," said Chaddha.

The project was piloted in the first quarter of 2008. A digital card was provided to 10,000 milk sellers where their daily transactions were recorded. Payment was co-ordinated through the HSBC bank.

The bank's eMFI Programme, launched to identify and finance emerging microfinance institutions, has also started operations in Gujarat.

The bank is in talks with 30 MFIs across the country and is expected to do a business with close to 10 of them in the near future. From Gujarat, the company is in touch with three to four MFIs.