HSBC eyes 20% of its business from insurance

HSBC at the group level and also in India is looking to generate at least 20% of its total business from the insurance sector, revealed HSBC India CEO and Group General Manager. She announced the renaming of the bank's acquired securities brokerage arm, IL&FS Investsmart, as HSBC Invest Direct.

India CEO stated that the bank's assessment is that India's GDP is expected to grow at 8% next year, despite the drought-like situation in the country. The rural economy's growth could go down by as much as 25% due to the poor monsoon. However, its effect is likely to get offset by better industrial output over a period of time. HSBC India's loan book is expected to expand mainly due to the corporate demand over next few years.

The bank has ruled out any plans on any further acquisitions within India in the near future but would however prefer to adopt an organic approach to expand across the nation. HSBC would be opening three branches by September-end and is awaiting the regulator's approval to open 22-25 more branches over a period of time in feeder regions of the country.

HSBC India had acquired 93.86% stake in IL&FS Investsmart in September last year and had recently initiated the process to delist the company from the stock exchanges. The move has helped HSBC to strengthen its position in wealth management space, as the brokerage firm's 200 branches also sell mutual funds and insurance products across the country.

19 August 2009