World’s local bank, Hongkong and Shanghai Banking Corporation Bank (HSBC), is all set to expand its operations at major level in India. According to a top HSBC official, India has gained the status of Bank’s fastest growing market in the world.

HSBC’s country head Naina Lal Kidwai said that the bank’s administration has seen a lot of opportunities across the country and it has become the fastest growing market for HSBC operations. The Bank has achieved almost 64 per cent growth in the past fiscal year.

Kidwai further said that the HSBC is the biggest player in the asset management business including offshore business with assets worth more than $12 billion under management till the date. Now, the bank has decided to largely explore the business opportunities in different segments in the market including insurance and investment banking.

She said:

All these sectors still remain largely under penetrated, which promises a lot of opportunities to the market players.

According to the report, the HSBC has already signed a joint venture with Canara Bank and Oriental Bank of Commerce in India to take first step in insurance business. The HSBC Insurance (Asia-Pacific) Holdings Limited is the third partner in the joint venture.

The officials of all the three banks had signed in the first week of March last year a non-binding Memorandum of Understanding to jointly set up a new life insurance company in India.

The new insurance company will have some 3,600 branches all over India. According to the joint statement, the company to make itself a noteworthy player in India’s speedily expanding life insurance industry will use the terrifying distribution capability of the joint venture.

According to the signed MoU among the three banks, Canara Bank will have a controlling seat with 51 percent stake in the new company. On the other hand, HSBC will have 26 percent stake and OBC will get the remaining 23 percent stake.

A report says that the new company will have the capital support of Rs.3.2 billion. The HSBC will be the larger investors with the contribution of Rs.1.7 million in the joint venture. The Canara Bank will contribute Rs.1 million and OBC Rs.460 million in the proposed venture to make an entry in India’s insurance sector.

HSBC has also announced its plans to go into the retail broking space by looking at the inorganic path to grow its portfolio in the country.