HSBC India goes in for a down-to-earth transformation

HSBC Bank's image in India is undergoing a change. Nowhere is this more evident than in the bank’s increasing focus on the small and medium enterprise segment as well as retail borrowers. “We are serving all ends of the spectrum,” says Ms Kidwai. “We have coined a brand of products called HSBC Pragati Finance - basically consumer finance. Today we are among the top three lenders in the country in this space. We are disbursing about 15,000 loans a month.” These small-ticket loans (less than Rs 50,000 per loan) are given without a security. Explains Ms Kidwai, “We have taken a view to giving it without collateral. What good is the security? What do we do with a durable like a scooter or television? We are really looking for the willingness to repay. Not too many banks lend unsecured loans of this order.” “If a borrower’s record improves with us, he or she will get lower interest rates,” says Ms Kidwai. Those rates are currently in the region of 32 per cent to 48 per cent per annum.