PRZOOM - /newswire/ -
Delhi, New Delhi, India, 2006/12/01 - Europe's largest bank by market value, HSBC Group Holdings, expects that its units in India will post annual profit increase of nearly 50%. As, the bank hikes lending to customers and taps medium and small sized firms..
HSBC Holdings, which is Europe's largest bank by market value, hopes that its unit in India will post annual profit increase of about 50%, as it hikes lending to customers and taps medium and small-sized companies.
The business in India contributed US$ 215 Million to the net income of UK based bank in 2005. HSBC India's CEO, Naina Lal Kidwai, said, "We're looking at 30-50% growth in terms of various businesses, and I believe we'll achieve this. Healthy economy of the country will help us attain this goal."
Citigroup, HSBC, and other foreign banks are tapping growing demand for credit cards, mortgages, and other types of consumer finances in an economy that's growing at more than 8% annually, close to China. Firms are borrowing in huge amounts for expanding production and meeting consumer demand, thus, lifting profits earned by these banks.
Besides companies, consumers, also, are borrowing in bulks to acquire cars and bigger houses, due to rising incomes and increased number of young people joining the workforce. Per-capita income of India has doubled over the last 10 years. Also, average age of homebuyers in India has come down to thirty years from fifty years.
According to the views expressed by a senior research analyst at RNCOS, who's the author of "Indian Retail Banking Sector Analysis (2006)", "Indian operations of HSBC will contribute more to the revenue of the group over the next few years. There're opportunities for banks to organically grow in all its 3 main areas of business (namely financial services, corporate lending, and commercial banking) in India."
- The current credit demand (in 2006) in rural India is estimated to be an approximately US$ 29,285.43 Million.
- Retail assets, that have seen an overwhelming growth of 48.9% from an asset base of US$ 9 Billion in 2000 to US$ 66 Billion in 2005, are projected to grow at a staggering rate of 35.3% to reach a value of US$ 300 Billion by 2010.
- There is a huge potential for growth in retail banking sector in India, with the advancement of technology, and the increase in disposable income.
About the report
This report helps clients to analyze the leading-edge opportunities critical to the success of the retail banking Industry in India. Detailed data and analysis helps investors, financial service providers, and global banking players navigate through the evolving banking industry in India.
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