Net profit for the Indian operations of Hongkong and Shanghai Banking Corporation in 2007-08 has risen by 41% to Rs 1,192 crore, from Rs 846 crore in the previous year. The bank witnessed a slight rise in net NPAs from 0.43% in March 2007 to 0.48% in March 2008 due to sticky assets in the retail portfolio with regards to credit cards.
While the total income of the bank rose to Rs 7,096 crore from Rs 4,720 crore in 2006-07, showing a 50% increase, total assets of the bank increased 38% to Rs 75,921 crore from Rs 54,929 crore.
The bank?s capital and reserves increased by Rs 2,299 crore to Rs 8,459 crore. In order to buck up its Indian operations, the group injected fresh capital of Rs 788 crore during 2007-08.
?The consistent strong performance by the bank in India speaks volumes about the strengths of our individual businesses, the range of products we offer our customers, the innovative abilities of our employees and the trust placed by our customers,? said Naina Lal Kidwai, group general manager and country head of HSBC India.
Kidwai said that the bank?s corporate business grew by 53% while the retail business by 47%.
?This is a healthy mix of both businesses contributing to our overall growth. However, despite high interest rates, we haven?t witnessed any slowdown in our retail portfolio,? said Kidwai adding that the net interest margins for the bank also improved from 4.16% in 2006-07 to 4.34%.
Deposits have risen by 22% to Rs 42,620 crore while advances have risen by 29% to Rs 29,944 crore.
The bank?s cost income ratio improved by 3% year-on-year from 45% in 2006-07 to 42%.
The capital adequacy ratio of the bank stands at 10.59% as of March 31, 2008 compared to 11.06% on March 31, 2007. During the year, the bank plans to apply for 40 more licences to the RBI.
The bank?s main thrust area would be the SME sector. ?We are continuously focusing on the SME sector by providing many innovative products and services,? Kidwai added.
