The profits of HSBC India have shown a broadly increasing trend. At 14.5 per cent (as on March 31, 2004), the capital adequacy ratio of HSBC was one of the highest in the Indian Banking Industry.

Anticipating a retail banking boom in India the bank acquired the Non-Fund activities from Gujarat Lease Financing Ltd. in 1999. In the year 2000, the bank acquired the Chandigarh branch licence from Deutsche Bank. In 2002, HSBC acquired retail banking business from BNP Paribas and the Retail Banking Operations in Kolkata from Bank of Tokyo-Mitsubishi. Currently HSBC has 37 branches across 18 cities.

HSBC plans to expand its capital market, corporate and investment banking teams in India. The bank intends to set up a global analytical support team to help the group in its research in investment banking globally.