Hsbc Walks Extra Mile To Facilitate Smes

The Hongkong and Shanghai Banking Corporation Ltd (HSBC), as part of its strategy to strengthen its delivery platform for the small and medium enterprises (SMEs) in the country, has launched the "extra mile business banking" service.

The bank, which has identified the SME sector as a key focus area in 2002, intends leveraging its capabilities in offering a host of services including factoring, trade service, cash management through the 30 branch network spread across 13 locations, Pranam Wahi, country head of corporate and institutional bank, said.

"The service is part of our liability-led strategy and aimed at helping the SMEs during their various trade cycles. Its configuration is akin to personal banking service offered by us," he said.

HSBC, which currently has 20,000 SME customers, is offering the SMEs the facilities of business phone/doorstep banking, special automated teller machine (ATM) card, no bounce cheque protection, cheques payable at par at HSBC's 30 branches, secured overdrafts and rapid cheque clearance through this enhanced current account facility.

Further, it offers autopay salary account facility, car loans on special terms, depository and trade services.

The special ATM card is a proprietorship card (it will be in the SME firm's name) that will enable the user to withdraw upto Rs 1,00,000 lakh, Wahi said.

"The bank, at present, has 80 per cent of its business coming from the corporate, institutional and treasury operations and 20 per cent from retail banking. We intend to grow our retail pie further," he averred.

Meanwhile, HSBC has firmed up plans to open a branch in Jaipur (Rajasthan).