The country's demography is attractive, where the young middle class population is growing. The growth of economy is higher among the large countries, HSBC chief executive (Asia-Pacific) Sandy Flockhart said.
Its India chief executive Naina Lal Kidwai said the bank had strong presence in wealth management segment through distribution of mutual fund and insurance products. It will take decision on entry including timing retail broking.
Depending on the decision on entry, bank may look at acquiring existing retail brokerage. The price is crucial aspect in this decision as the valuations are quite high at this point of time. "We can do it organically also, should be chose to enter this segment" , Kidwai said.
On growth prospect in India, Flockhart said besides capital market-related activity, commercial banking including corporate and SME financing also showing high growth and Indian operations have shown 20 per cent year-on-year growth.
HSBC expects the share of emerging markets including India in its global business to touch 60 per cent in the next few years, he said. India has been among the top 10 contributors to HSBC's global activity in last 18 months.
At present, bank's Indian unit is working on business plans for 2008 and the extent for fresh capital requirement will be clear by February next year. The present capital base of group is $1.7 billion.
The present turmoil in the global financial market as fallout of the US subprime crisis may make investment banks to move some business especially analytical work into India. Financial sector players are looking for cost-effectiveness and India has established leadership in quality as well as cost-effectiveness, Kidwai said.
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