Financial Daily from THE HINDU group of publications
Saturday, Oct 19, 2002
Financial Daily from THE HINDU group of publications Saturday, Oct 19, 2002 |
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Money & Banking
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Foreign Banks HSBC chief bets on India for growth Our Bureau
Mr David Eldon,Chairman, HSBC, flanked by Mr Z.J. Cama, Group General Manager and CEO, HSBC India, and Mr E Prakash Kuruvilla, Regional Head, South India, in Chennai on Friday.
CHENNAI, Oct. 18 THE Chairman of the Hong Kong and Shanghai Banking Corporation (HSBC), Mr David Eldon, said that he expected growth to happen most in the Asia-Pacific region, particularly, in China and India. He was here to have a look at the HSBC's call centre at Hyderabad and the Southern operations. Mr Eldon's visit coincided with an announcement from the Securities and Exchange Board of India (SEBI), granting permission to HSBC to set up an asset management company, and get into mutual funds business. HSBC intends to kick-start this business with three schemes, next month. The HSBC's India chief, Mr Zarir J Cama, said the bank intended to set up a subsidiary for insurance broking, as soon as the regulation regarding broking firms was notified. It was also mentioned that the bank intended to step up its presence in India, through opening more branches. Currently, it has 31 branches in 28 cities. Two more branches — in Jaipur and Ludhiana — are to be opened shortly. Mr Eldon said the bank would prefer to grow organically, although it would not rule out acquisition, if a "suitable opportunity" came by. Also, the bank preferred the current structure — as a branch network of the global organisation — rather than convert itself into a locally incorporated subsidiary. In response to a question, Mr Eldon said that while India had a "massive" potential, the potential was largely unrealised, because of the lethargy in taking reforms forward. He gave the example of the insurance sector, which took a very long time of deliberations, before it actually opened up. Mr Eldon said that HSBC would not base its investment decisions on the ratings given by the international rating agencies.
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