Hsbcs 2002 Net Drop 17%

The Hongkong and Shanghai Banking Corporation Ltd has reported a 17.11 per cent fall in net profit at Rs 166.6 crore for the year ended March 31, 2002 compared with Rs 201 crore in the previous year.

The total income of the bank grew 15 per cent at Rs 1,978 crores. Net interest income rose 7 per cent from Rs 472 crore to Rs 503 crore.

The net non performing assets of the bank have increased to Rs 177.9 crore from Rs 60 crore in March 31, 2001. In percentage terms, the net NPAs were at 2.27 per cent for the year ended March 31, 2002 from 0.99 per cent in the previous year.

According to HSBC's area financial controller Anurag Adlakha, the bank has made provisions for its exposure on infrastructure. The operating income has seen a 15 per cent growth.

HSBC group general manager and chief executive officer (India) Zarir J said: "Despite the economic slowdown in the year ending 2002, we have registered a balance sheet growth of 20 per cent and our total income has increased 15 per cent. The net results for year has been affected by the need to make certain provisions in line with the group's stringent norms of providing for non performing assets."

The capital adequacy ratio of the bank as on March 31,2002 was at 10.92 per cent. The deposits increased by 24 per cent to Rs 12,341 crore from Rs 9,951 crore while advances rose 25 per cent to Rs 7,836 crore (Rs 6,246 crore). The advances to retail customers accounted for 25 per cent of the total advances.

HSBC had also signed an agreement with BNP Paribas to offer retail banking products and services to its customers in Ahmedabad, Bangalore, Hyderabad, Kolkata, New Delhi, Mumbai and Pune.