HSBC to set up insurance brokerage firm

Our Banking Bureau
13 June 2002

Mumbai: Hong Kong and Shanghai Banking Corporation Ltd (HSBC) is planning to set up an insurance brokerage firm in India shortly.

"We are in talks with several institutions since it will be a joint venture with 26 per cent stake by HSBC," says HSBC India deputy chief executive officer Chris Hothersall.

A bank official says the plan is subject to the Reserve Bank of India and the Insurance Regulatory Development Authority approval as the regulations regarding setting up of insurance brokerage firm by foreign banks are still being formulated.

Hothersall, who launched HSBCs new Internet-banking service here, says the service is targeted at small and medium enterprises (SME). This service is an extension of the currently offered to personal banking customers throughout India.

"Through this simple and secure way to manage bank accounts online, we plan to expand our SME customer base to 1,00,000 by December 2002 from over the present 20,000," says HSBC country head (corporate and institutional banking) Pranam Wahi.