HSBC India has reported a reduction of 44% in net profits for the year ending 31st December 2009. This reduction is due to loss of Rs. 1000 crore suffered by the retail banking arm of the bank. The commercial banking arm of the bank has also reported a decline. However the bank’s gains from its non banking services such as brokerage and asset management has gone up.
But despite suffering losses, the Indian arm of the bank continues to be the 9th biggest profitable arm of HSBC.
The retail banking arm of HSBC, also called as personal finance service by the bank posted a loss of $219 million as compared to a loss of $155 million previous year. The bank has posted losses of $444 million during the last 3 years – from 2007-2009. It would be the one of the biggest losses by any bank in retail segment in India.
The commercial banking arm in India has reported losses of $41 million as compared to a profit of $118 million previous year. But the bank’s gains from other businesses in India nearly doubled to $240 million as compared to $123 million in 2008.