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HSBC would be investing in growing its own businesses in India.

New Delhi , Nov. 25

HSBC India Chief Executive Officer (CEO), Mr Niall S. Booker, sees "strong chances" of dilution of HSBC's shareholding in UTI Bank over a period of time, as and when the latter bank looks to raise more capital.

Currently, HSBC has a 12.6 per cent stake in UTI Bank. This is the holding of HSBC Group after UTI Bank went in for a global depository receipts (GDR) issue.

Mr Booker pointed out that there has been a recent study that had concluded that the Indian banking system needed about $14 billion of capital in the coming years.

Asked as to why he did not want the stake to go up rather than down in HSBC's largest shareholding in an Indian bank, Mr Booker told presspersons that the regulations were the rights and prerogative of the regulator to put in place in the interest of the country and that HSBC would abide by it.

"We will do what the regulator wants us to do. If the regulation does not permit us to increase the stake in line with the capital raised, we will be of course diluting it," he said.

Mr Booker said that HSBC's investment in UTI Bank was a financial investment. He also said that HSBC would be investing in growing its own businesses in India. "We still have a huge faith in the overall Indian story. We will be investing in growing our own businesses. We will look at other businesses. I will have to stress that it will have to be within regulatory framework," he said.

Asked whether HSBC was looking at any other banks in India for investments, HSBC Group's top brass replied in the negative.

Mr Booker also said that he was keen to position personal financial services of the HSBC Bank in India as a big beneficiary of the growth in per capita gross domestic product (GDP) that is expected to be seen in the coming years.

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