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MUMBAI : Hongkong and Shanghai Banking Corporation Limited’s (HSBC) India operations reported an 8% jump in profit before tax to $1.11 billion in the year ended 2021 led by growth in income from its commercial banking business.  

The bank had reported profit before tax of $1.02 billion in 2020.  

The profit before tax from its commercial banking business, which includes lending to medium and small companies, rose 42% to $265 million in the year ended 2021 from $187 million in 2020. The income from global banking and markets, which is the biggest revenue contributor, however remained flat at $593 million in the year ended 2021.  

HSBC’s corporate loan book has grown at a compounded rate of 16% in the last five years led by a tripling in loans to SMEs. The bank’s SMEs book tripled to $ 1bn in 2021 from $ 300mn in 2018. 

India is the fourth largest contributor to the bank's global profit behind Hong Kong, UK and China.

 “HSBC India has recorded a profit before tax of over $1 bn and has consistently been amongst the top five contributors to the Group’s profits. The wholesale business has performed extremely well across liabilities, assets, transaction banking and capital markets. While we’ve grown across the board, certain segments like Business Banking and International Subsidiary Banking have stood out and continue to outpace the market. India is a key growth market for HSBC globally and we’re keen to expand our international wholesale and wealth businesses," said Hitendra Dave, General Manager & CEO, HSBC India 

Last month the bank announced that it will acquire L&T Mutual Fund in India for $425 million subject to regulatory approvals as part of its global strategy to expand its wealth management capabilities in the country. Profit before tax from the bank’s wealth and personal banking division increased 25% to $20 million in 2021 from $16 million in 2020. 

“We accelerated the development of our wealth capabilities across the rest of Asia by several years through two acquisitions. We entered into an agreement to buy AXA Singapore, which was completed earlier this month and will expand our insurance and wealth franchise in our ASEAN regional hub. We also agreed to buy L&T Investment Management to strengthen our asset management business in India. Both deals represent significant steps towards our ambition of being a leading wealth manager in Asia," said Noel Quinn, Group Chief Executive, HSBC. 

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