Geographical Aspects Effecting Hsbc Business in India

IV. The Role of Geography and the Firm

Amongst all the factors that lead to the growth of HSBC Bank in India, there is a pivotal role of geography of the country too that facilitated the growth & lead to the success of the Bank.

First of all, Indian Banking sector was dominated by the Nationalised banks & none of the private & foreign banks were allowed to do business.

With the change of time , changed the mentality of government too, towards the private banking & opening of banking sector for the foreign giants. That lead to the arrival of HSBC bank In India.

The banking culture in India had been primitive, so were the banking habits of the people.

Taking loan for the agriculture purpose, putting money in saving account for the interest had been the sole motive of the people doing banking. Then came the revolution .... A revolution brought by the foreign Banks ... HSBC Being the biggest of them.. this banking revolution changed the way banking was done in India.. Listing shares on Stock exchange, inclination towards online banking , phone banking , investment banking , customer relationships , insurance advise, mutual funds., all these things changed the way banking was done in india.

It not only educated the people regarding new banking techniques prevalent in western countries, but also gave them the chance to think beyond their primitive banking practices.

Another geographical factor that lead to the growth of HSBC Bank in India was their foray in the major cities of India.., which is full of well-educated & service related class, which knew the benefits that these banks such as HSBC were offering as opposite to the Traditional user in the remote areas who were reluctant using private & foreign banks because of the unawareness & ignorance.

Furthermore, the economic development of India past couple of decades also lead to the growth of HSBC Bank`s India Operations.

All these factors combined to make the HSBC another success story in the Indian Banking Sector !