'FCNR haul to power HSBC's India wealth, retail banking push'
HSBC forecasts that foreign currency deposits will significantly enhance its operations in India. By securing $14.5 billion through a special RBI swap facility, the bank aims to expand lending and wealth management services. The attractive leverage option of up to nineteen times has drawn in depositors. HSBC's strategy is to deploy these funds cautiously toward corporate lending and mortgage…
Mumbai: HSBC, the British lender, anticipates foreign currency non-resident (FCNR) deposits collected under India's Reserve Bank of India special swap facility to bolster its wealth management and retail banking ventures in the nation. These deposits amounted to $14.5 billion, just trailing ICICI Bank's $17.88 billion collection.
Sandeep Batra, HSBC's managing director and head of wealth and personal banking in India, shared that the additional resources would facilitate lending and expansion of wealth management services. The bank provided a leverage option of up to 19 times, enabling depositors to borrow 19 times their deposited funds. Half the depositors' time was for five years.
Batra disclosed plans to open 12 more branches and leverage depositors' capabilities. The bank accepted deposits ranging from $100,000 to $2.5 million, with a leverage up to 19 times, largely financed through its Gift City, Gujarat branch. Globally, the Middle East contributed the most to HSBC's FCNR (B) scheme, followed by Singapore and Hong Kong.
HSBC offered services to clients ranging from ₹50 lakh to $2 million for private banking clients, with a new likely retail broking business to be launched later this year.
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