MUMBAI, May 10: Hongkong Bank and the newly floated HSBC Capital Markets India Private Ltd will synergise their activities to propel the growth of HSBC group. The group has decided to adopt an `aggressive' posture in India. A step in the direction has been taken with the induction of two Hongkong Bank representatives on the nine-member board of the investment banking firm in India. The board will comprise four representatives from the London office of HSBC Investment Bank, one from its middle-east wing, one from the securities business of the group in Hongkong, and two from Hongkong Bank.

"The two members from Hongkong Bank will be inducted on the board to bring about a synergy between the bank, an affiliate of the HSBC group, and HSBC Capital Markets," SBC Investment Bank deputy chairman H Paul Selway Swift told the The Financial Express.

According to Swift, one aspect of the synergy would be that HSBC Caps would first approach Hongkong Bank when it gets a mandate to undertake project financing.

"Though the need, in most cases, would be to tap more banks, Hongkong Bank would be the first choice," said Swift.

"Corporates now look at alternate methods of raising finance. HSBC Caps will ensure that the group does not lose clients to others," said Swift. That apart, HSBC Caps will, in the initial stages, rely heavily on its large client base and the networking of Hongkong Bank, which has had a long presence in the country.

"They will refer clients who look at products, other than bank loans, to fulfill their capital requirements. HSBC Caps will provide an array of products," Swift added.

"Once HSBC Caps develops its own client base, it will refer clients to Hongkong Bank for meeting their funds requirement," he said.

HSBC B&K, the stock broking arm of the HSBC group, will also synergise with HSBC Caps in marketing issues for which the latter bags the mandate. "They will provide research material as well," Swift said.

"Worldwide, the HSBC group works with its arms. The strategy is going to be similar in the case of India. There is no doubt that we are going to be more aggressive in our approach," the deputy chairman said.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.