A leaked list of over one lakh account holders in HSBC’s Swiss banking unit, including 1,195 Indians, recently became public, prompting authorities in India and many other countries to launch their investigations to ascertain whether these accounts had illicit money stashed abroad.
The bank has also received “subpoenas and requests for information” from the U.S. and other authorities with respect to certain U.S.-based clients of an HSBC company in India. This case relates to some NRIs facing investigation in the U.S. for alleged violation of the American tax laws. HSBC saw its revenue and profits rise in India last year even as it reported a 17 per cent fall in global profits for 2014. Its India revenue rose by 10 per cent to USD 1.83 billion, while profit was up 7 per cent to USD 700 million.
The bank said the economic recovery in India remained constrained last year, although a new government with a strong mandate boosted market sentiments. Announcing its full-year results, the bank also said that its operations are exposed to various “geopolitical risks” which increased during 2014 and included high tensions over the line of control between India and Pakistan.
The bank continued to grow its balance sheet in India in commercial banking, particularly by helping UK corporations to invest in India during 2014. In global banking and markets segment also, HSBC was adviser on two of the largest M&A transactions in the country in 2014, and in Wealth Management it launched Managed Solutions, a multi-asset fund series.
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