HSBC to Invest $240 million in India Operations
HSBC is going to invest over US$240 million into its operations in India in an effort to support quicker growth of retail and commercial businesses.
“This company will serve us as a low-cost model for origination of the consumer finance business,” said HSBC India’s group CEO, Niall SK Booker.
According to a Financial Express article,
The British bank plans to infuse fresh capital in two phases. The investment includes $150 million in new capital and $30 million in retained profit generated by the Indian operations in the year to March 2004. The second phase of infusion of $63 million will take place by June 2005.
The fresh infusion will be used to support the growth of the bank’s retail and commercial banking operations in India. The funds will also boost the bank’s CAR for its Indian operations to 13.5% from 10%, as on December 31, 2004. HSBC had also injected $150 million into its Indian operations in March 2003.
“Our Indian operations have demonstrated strong organic growth and the additional capital is expected to support our growth strategy,” said Booker.
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