HSBC India is planning to step up its focus on value-addition in its commercial banking services. “As income levels rise in emerging markets, including India, a lot more trade is happening in value-added products in sectors such as automobiles and there is huge opportunity to be tapped here,” Sandeep Uppal, Head, Commercial Banking, HSBC India, told Business Line here.
HSBC’s commercial banking business division provides financing and risk-mitigation solutions to its corporate customers, including small and medium enterprises, mid-corporates and multinational firms.
“As a global bank, HSBC is mostly present on both ends of trade transactions which is an advantage for us.
“We are also able to provide excess liquidity to fund trade in any specified foreign currency,” the HSBC executive said.
The demand for value-addition in commercial banking services is increasing as more mid/small companies are now investing overseas.
“Till 10 years ago, we were assisting our overseas customers in coming to India. But in the last five/six years, our Indian clients are emerging as multinationals across the sectors,” Uppal said.
Though HSBC now accounts for less than one per cent of the Indian market, it has a “large and growing” client-base, Uppal said without revealing the numbers.
In the year ended December 2012, HSBC India’s commercial banking division recorded a net profit of $89 million, he said.
“Our large rupee balance-sheet and lower current account and savings account ratio will help in competitive pricing,” he added.
HSBC will continue to invest in expansion in India. “We are finding some multinational companies based out of Hyderabad interested in our services. Hyderabad is a large centre for us and would expand further,” Uppal said.