Date:15/11/2006 URL: http://www.thehindubusinessline.com/2006/11/15/stories/2006111501830600.htm

Back HSBC India to enter new segments

Our Bureau

Thiruvananthapuram , Nov. 14

HSBC India is looking to reach out to new consumer segments through offerings such as its recently launched HSBC Pragati Finance.

Such new offerings and distribution models will enable the bank to reach consumer segments it has so far been unable to reach in India, said Mr Nicholas G. Winsor, Head-Personal Financial Services, HSBC India.

HSBC Pragati Finance, for instance, has enabled the bank to offer consumer finance to people who have no credit history and are unable to prove their repayment ability, but actually have the ability to repay, he said. This product will help people who have so far had limited access to organised lending.

As people who take loans under this scheme establish their credit history through regular repayments, the bank will be able to offer them better terms including loans at lower rates of interest.

Meanwhile, the bank is also targeting other customer segments such as non-resident Indians (NRIs), Mr Winsor said.

The `OneWorld' account package, launched in association with HSBC Bank Middle East, offers NRIs based in the UAE a range of facilities including free transfer of funds to their HSBC accounts in India.

The bank will continue to look for opportunities to invest in India, Mr Winsor said. It will open its 47th Indian branch in Lucknow later this month and hopes to touch 50 branches in the country by next year. The bank also plans to extend its private banking services to 10 cities by next year. It currently offers these services in six cities.

People in India, especially young people, have become more comfortable with borrowing for consumption, he said. However, despite the growth in borrowing for consumption, the level of consumer debt in India is still low, Mr Winsor added.