HSBC bullish on commercial banking

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