Page 6 - BANKING FINANCE JANUARY 2016 ONLINE

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BANK UPDATE

Karnataka Bank target Rs. 1.8 lakh cr biz by March 2020 HSBC closes Pvt. banking

Karnataka Bank Ltd has set a target of rent account savings account) depos- biz in India
achieving a business of Rs.1.8 lakh its are expected to constitute 27.40
crore by 2020. per cent of the total deposits by March HSBC is closing its private banking
2020. Focusing on the expansion of business in India which caters to
The 'KBL Vision 2020' document, a retail and mid-corporate credit, the
business plan for the next five years, vision document expects these two to those with a net
which was approved by the board of constitute around 70 per cent of the worth of over
directors of the bank recently, envis- $1 million (Rs
ages a total business of total advances by March 6.7 crore).
Rs 1.8 lakh crore. This 2020. These custom-
includes deposits of Rs. 1 ers will now be offered services un-
lakh crore and advances The net interest margin, der HSBC Premier, a retail banking
of Rs. 80,000 crore by March 2020. which was 2.36 per cent and wealth management product
The bank achieved a total business of by the end of March 2015, is expected for the mass affluent with assets of
Rs. 77,689 crore, including deposits of to touch 3.01 per cent by March 2020. over Rs 25 lakh.
Rs. 46,009 crore and advances of Rs. The bank aims to bring the gross and
31,680 crore during 2014-15. net NPAs (non-performing assets) below In the past, Morgan Stanley and RBS
1.5 per cent and 0.60 per cent, respec- had discontinued their private banking
According to the document, CASA (cur- tively, by the end of the vision period. business in the country. Citi, too, is tar-
geting the mass affluent category with
Axis Bank launches mobile apps for corporate clients its new platform Citi Priority.

Axis Bank, the country's third largest allowing them mobility of transaction, HSBC is planning to complete the mi-
private sector bank, has rolled out a slew we believe that these businesses will gration in the first quarter of 2016.
of mobile banking applications When contacted, an HSBC spokes-
for its corporate clients. grow more which will in- person said, "After a strategic review
crease the wallet share and of global private banking in India, we
Srinivasan Varadarajan, ex- stickiness." The bank has have decided to close the business.
ecutive director-corporate launched four key solutions We are working closely with our cli-
banking, Axis Bank, said these for its corporate clients - ents to minimize the impact of this
digital offerings would also tab-based internet banking decision on them, offering them the
help the bank to grow its corporate solution, pay connect, trade finance choice to move to HSBC Premier, our
customer base. connect and forex connect. global retail banking and wealth
management proposition wherever
"These are products on which the re- The lender said these applications appropriate. We are investing in
turn on capital and return on equity were more convenient and would al- HSBC Premier to enhance the range
are very high. Our focus is to grow this low its corporate clients a faster turn- of products and services to custom-
business at an attractive pace. And by around time. ers with more sophisticated needs."

Fed Bank's mobile recharge facility The spokesperson added that this is
part of HSBC group strategy to sim-
Federal Bank has launched missed call service for account holders in Chennai to plify business and deliver sustainable
recharge their mobile. For availing the service, the account holder growth. "India is a priority market for
must do a one- time registration from his registered mobile num- HSBC where we continue to invest.
ber by sending an SMS to 9895088888. Once registered, the ben- We aim to achieve sustainable
eficiary has to make a missed call from his mobile number to growth by supporting needs of cus-
8431700700, and his phone will be recharged immediately and tomer in retail banking and wealth
the amount debited from his bank account. The beneficiary can management, global banking and
be either the account holder himself or any other person. The markets and commercial banking
businesses," the spokesperson said.
maximum amount of recharge that can be done using missed call service is lim-
ited to Rs. 500 a day an account. Customers may call the toll free number 1800
425 1199 for further details.

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