Through commercial banking, HSBC is expecting to get a business of $5-10 million (Rs 2 crore to Rs 4 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 and Ankleshwar in Gujarat,” said Puneet Chaddha, head of commercial banking, HSBC.

Nearly 20 per cent of HSBC’s total revenue comes from commercial banking, a sector in which the bank is expecting to grow fastest 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 spots, forwards and options, internet banking, escrow accounts, factoring accounts, financing options, loans agains property, home loans and business credit.

Similar to its ‘e-dairy’ card pilot project with the government of Haryana, where the bank digitised milk procurement between sellers and milk federations, the bank is looking a model in Gujarat. “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.

Under the e-dairy card project, which was piloted in the first quarter of 2008, the bank mediated between milk-sellers and -buyers. A digital card was provided to 10,000 milk-sellers where their daily transactions would be recorded. Payment was coordinated through HSBC bank.

The bank’s eMFI Programme, which has been launched to identify and finance emerging Microfinance Institutions (MFIs) has also started operations in Gujarat. Across the country, the bank is in talks with 30 MFI players and is expected to do business with close to 10 of them in the near future. From Gujarat, the company is in touch with three to four MFIs.