HSBC invests Rs 1,000 crore in Indian operations
11 Mar 2005
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Mumbai: The Hongkong and Shanghai Banking Corporation (HSBC) will infuse $243 million (approx Rs1,000 crore) in its Indian operations and is also looking at establishing a wholly-owned non-banking finance company (NBFC) for driving its retail growth. On top of a $150 million capital infusion this month, HSBC will retain its remittable surplus for 2003-2004 of $30 million, plus an expected $63 million for the current financial year.
According to Niall Booker, group general manager and CEO India, HSBC operations, the infusion would boost the bank's capital adequacy ratio to 13.5 per cent from 10 per cent at the end of December 2004. HSBC India's net profit increased by 35 per cent in 2004.
HSBC had last infused capital of $ 150 million in its Indian operations in March 2003. The capital infusion will take the total capital of the bank's Indian operations to $600 million.
HSBC 's home loan portfolio grew by 85 per cent to Rs3,200 crore on December 31, 2004. HSBC India's total assets book at the end of December 2004 stood at Rs27,000 crore.
