HSBC India profits up 64%
FOREIGN BANKS ON A ROLL
| The net profits were Rs 846 crore against Rs 515 crore a year earlier. India is among the top 10 contributors to the group profits. |
| The bank's total income during the year increased by 51 per cent to Rs 4,720 crore from Rs 3,130 crore in 2005-06. Its total assets increased 47 per cent to Rs 54,987 crore from Rs 37,473 crore in the previous year. |
| The bank's deposits grew by 40 per cent to Rs 34,825 crore during the year, while advances rose by 38 per cent to Rs 23,142 crore. |
| "The growth in retail advances, particularly the mortgage business, is under pressure as a result of the rising interest rates. The unsecured loans are showing a healthy growth. HSBC Pragati Finance, the consumer finance offering of the bank, has become the largest originator of loans in Coimbatore, Ahmedabad and Chennai. We are booking around 10,000 loan accounts a month,'' said Naina Lal Kidwai, chief executive officer, HSBC India. Pragati Finance consists of clientele with low income levels and loan ticket size under Rs 50,000. |
| HSBC invested a further Rs 1,437 crore in the Indian branches in 2006-07, comprising of fresh infusion of Rs 904 crore and profit retention of Rs 533 crore. |
| This is in addition to Rs 523 crore reinvested in the bank in 2005-06. The bank's capital adequacy ratio is 11.06 per cent as on March 31, 2007, as compared with 10.61 per cent on March 31, 2006. |
| "The retail segment constitutes around 40 per cent of the bank's advances, while the balance is corporate. Retail could go up to 50 per cent. We see huge growth potential in the small and medium enterprises and the merger and acquisition business,'' said Kidwai. With a network of 47 branches, the bank has applied for more branch licenses to the Reserve Bank of India. It opened four new branches last year. |