The ascendency of India as an economic world power

HSBC is one of the names in the banking sector in Asia. It has a strong presence in India and HSBC is doing great in India these days. You know that Indian economy is growing at a fast pace and HSBC is growing even much faster than Indian economy.

So, HSBC bosses feel that it is time that they take Indian market more seriously. In fact, HSBC wants to increase its revenue from the Indian market a lot in the next 5 years.

Reuters reported:

Kidwai also said London-based HSBC's previously stated goal of building India into a $1 billion business on a pretax profit basis within five years is well within reach.

"We'll do that in five years," she said. "Five years is too long."

In the first half of 2007, HSBC's pretax profit from India totalled $299 million. India's financial services sector has been growing at about three times gross domestic product, which is expanding at a nearly 9 percent annual clip.

Kidwai said strong economic growth in India, where less than 40 percent of households have bank accounts, augured well for further financial services growth.

Indian government has not fully opened up the banking sector for foreign banks yet. There is some restrictions yet. Well, Indian government will open up the banking sector further in the next 2-3 years. Most people in India do not have a bank account. So, naturally, HSBC has all the potential to grow in India for some time to come.