A recent press report said that HSBC India’s profit before tax has increased by 33 per cent year-on-year to $451 million, during the half-year ended June 2011.
Reports said that the growth was mainly from commercial banking and global banking and markets segments, even as the foreign bank cut down the losses in its retail banking and wealth management segment. India’s share in the group’s profits is approximately 4 per cent.
Reports also said that the retail banking and wealth management segment has faced a loss of $4 million during the six-month period, lower than the loss of $50 million in the first half of last year. The total loan book was flat at $6.11 billion ($6.21 billion).
Mr. Stuart Davis, Chief Executive Officer, HSBC India said that the loan growth was flat because of the high demand for External Commercial Borrowings from its corporate clients and that they were booked offshore in its overseas book. He said that the bank will continue to grow its unsecured book in a calibrated and controlled manner.
The bank’s net fee income grew by 17 per cent to $2.7 billion, as there was strong demand for wealth management and trade finance products. The loan growth in H1 was 13 per cent. The bank is now shifting to more secured portfolios and corporate loans.