HSBC Open To Taking Over Indian Banks

KOLKATA: HSBC, a leading foreign bank operating in India, is open to the idea of acquisitions subject to the regulatory regime and environment which would be in place in 2009 when the Indian banking sector opens up to overseas players.

Group general manager and country head of HSBC group companies in India Naina Lal Kidwai said, "We are open to the idea of taking over Indian banks depending upon the environment and regulatory regime which would rule in 2009," she said.

When pointed out that foreign banks like HSBC would have to target private sector banks since public sector banks were controlled by the government, Kidwai wondered why only the private banks.

Kidwai was of the view that the government should also allow public sector banks to face the competition when the Indian banking sector was thrown open to foreign players.

At the moment, the main focus of HSBC would be organic growth. "We are keen on organic growth still now", she told reporters here on Friday. In India, the banking sector was controlled by public sector banks and the rest by private and foreign banks.

HSBC has 47 branches at the moment. Kidwai said that the optimum number of branches which HSBC was looking at was 200.