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UNIVERSAL AND INVESTMENT BANKING

HSBC BANK

GROUP MEMBERS
NAME PINAL PARSANA TAMANNA PATEL SHIVANI RAJGURU SWATI SURELIA MANSI SHAH

ROLL NO
27 32 38 47 54

PROF: RUPA MAM

A UNIVERSAL BANK
Bank participates in many kinds of banking activities and is both a commercial bank and an investment bank These are also called full-service financial firms, although there can also be fullservice investment banks which provide asset management, trading, and underwriting. The concept is most relevant in the United Kingdom and the United States, where historically there was a distinction drawn between pure investment banks and commercial banks. In the US, this was a result of the GlassSteagall Act of 1933. In both countries, however, the regulatory barrier to the combination of investment banks and commercial banks has largely been removed, and a number of universal banks have emerged in both jurisdictions. However, at least up until the global financial crisis of 2008, there remained a number of large, pure investment banks. In other countries, the concept is less relevant as there is not regulatory distinction between investment banks and commercial banks. Thus, banks of a very large size tend to operate as universal banks, while smaller firms specialised as

commercial banks or as investment banks. This is especially true of countries with a European Continental banking tradition. Notable examples of such universal banks include BNP Paribas and Societe Gnrale of France, HSBC and RBS of the United Kingdom, Deutsche Bank of Germany, and UBS and Credit Suisse of Switzerland. Following the 1907 financial crisis, the U.S. Monetary Commission wanted to understand the major financial systems of the world. A treatise by Jakob Riesser, the director of a Berlin bank, argued that the German universal banking system possessed beneficial characteristics that allowed it to efficiently provide inexpensive capital to industry and promote growth. Alexander Gerschenkron also advanced the hypothesis that universal banking was critical to Germany's industrialization. More recently, Caroline Fohlin has questioned the validity of the Gerschenkron hypothesis. Universal banking and relationship banking often coexist, but can exist independently. The provision of many services by universal banks can lead to long-term relationships between universal banks and firms.

HSBC BANK
Is a British multinational banking and financial services company headquartered in London, United Kingdom. As of 2012, it was the world's third-largest publicly held bank and sixth-largest public company, according to a composite measure by Forbes magazine. HSBC is a universal bank and is organised within four business groups: Commercial Banking; Global Banking and Markets (investment banking); Retail Banking and Wealth Management; and Global Private Banking. It has around 7,200 offices in 85 countries and territories across Africa, Asia, Europe, North America and South America, and around 89 million customers. As of 31 March 2012 it had total assets of $2.637 trillion, of which roughly half were in Europe, the Middle East and Africa, and a quarter each in Asia-Pacific and the Americas. HSBC Holdings plc was founded in London in 1991 by The Hongkong and Shanghai Banking Corporation to act as a new group holding company and to enable the acquisition of UKbased Midland Bank. The origins of the bank lie in

Hong Kong and Shanghai, where branches were first opened in 1865. Today, HSBC remains the largest bank in Hong Kong, and recent expansion in mainland China, where it is now the largest international bank, has returned it to that part of its roots. HSBC has a primary listing on the London Stock Exchange and is a constituent of the FTSE 100 Index. As of 6 July 2012 it had a market capitalisation of 102.7 billion, the second-largest of any company listed on the London Stock Exchange. It has secondary listings on the Hong Kong Stock Exchange (where it is a constituent of the Hang Seng Index), the New York Stock Exchange, Euronext Paris and the Bermuda Stock Exchange

HISTORY
For more information on the history of HSBC prior to the founding of HSBC Holdings in 1991, see The Hongkong and Shanghai Banking Corporation. The HSBC Building in Shanghai, the headquarters of the Shanghai branch of The Hongkong and Shanghai Banking Corporation from 1923 to 1955

The Hongkong and Shanghai Banking Corporation was founded by Scotsman Sir Thomas Sutherland in the then British colony of Hong Kong on 3 March 1865, and in Shanghai one month later. In 1980, HSBC acquired a 51% shareholding in US-based Marine Midland Bank, which it extended to full ownership in 1987. HSBC Holdings plc was established in the United Kingdom in 1991 as the parent company to The Hongkong and Shanghai Banking Corporation in preparation for its purchase of the UK-based Midland Bank and the impending transfer of sovereignty of Hong Kong to China. HSBC Holdings' acquisition of Midland Bank was completed in 1992 and gave HSBC a substantial market presence in the United Kingdom. As part of the takeover conditions for the acquisition, HSBC Holdings plc was required to relocate its world headquarters from Hong Kong to London in 1993. Major acquisitions in South America started with the purchase of the Banco Bamerindus of Brazil for $1bn in March 1997 and the acquisition of Roberts SA de Inversiones of Argentina for $600m in May 1997. In May 1999, HSBC expanded its presence in the United States with the purchase of Republic National Bank of New York for $10.3bn.

2000 to 2010

The HSBC Main Building in Hong Kong, which was designed by Norman Foster and completed in 1985 Expansion into Continental Europe took place in April 2000 with the acquisition of Crdit Commercial de France, a large French bank for 6.6bn. In July 2001 HSBC bought Demirbank, an insolvent Turkish bank. In July 2002, Arthur Andersen announced that HSBC USA, Inc., through a new subsidiary, Wealth and Tax Advisory Services USA Inc. (WTAS), would purchase a portion of Andersen's tax practice. The new HSBC Private Client Services Group would serve the wealth and tax advisory needs of high net worth individuals. Then in August 2002 HSBC acquired Grupo Financiero Bital, SA de CV, Mexico's third largest

retail bank for $1.1bn. In November 2002 HSBC expanded further in the United States. Under the chairmanship of Sir John Bond, it spent 9 billion (US$15.5 billion) to acquire Household Finance Corporation (HFC), a US credit card issuer and subprime lender. In a 2003 cover story, The Banker noted "when banking historians look back, they may conclude that [it] was the deal of the first decade of the 21st century". Under the new name of HSBC Finance, the division was the second largest subprime lender in the US. The new headquarters of HSBC Holdings at 8 Canada Square, London officially opened in April 2003. In September 2003 HSBC bought Polski Kredyt Bank SA of Poland for $7.8m. In June 2004 HSBC expanded into China buying 19.9% of the Bank of Communications of Shanghai. In the United Kingdom HSBC acquired Marks & Spencer Retail Financial Services Holdings Ltd for 763m in December 2004. Acquisitions in 2005 included Metris Inc, a US credit card issuer for $1.6bn in August and 70.1% of Dares Salaam Investment Bank of Iraq in October. In April 2006 HSBC bought the 90 branches in Argentina of Banca Nazionale del Lavoro for $155m. In December 2007 HSBC acquired The Chinese Bank in Taiwan. In May

2008 HSBC acquired IL&FS Investment, an Indian retail broking firm. In 2005 Bloomberg Markets magazine accused HSBC of money-laundering for drug dealers and state sponsors of terrorism. Then-CEO Stephen Green said that This was a singular and wholly irresponsible attack on the banks international compliance procedures. but subsequent investigation indicated that it was accurate. U.S. Assistant Attorney General Lanny Breuer characterised HSBC compliance during this period as "stunning failures of oversight and worse ... The record of dysfunction that prevailed at HSBC for many years was astonishing." In March 2009, HSBC announced that it would shut down the branch network of its HSBC Finance arm in the U.S., leading to nearly 6,000 job losses and leaving only the credit card business to continue operating. Chairman Stephen Green stated, "HSBC has a reputation for telling it as it is. With the benefit of hindsight, this is an acquisition we wish we had not undertaken." According to analyst Colin Morton, "the takeover was an absolute disaster". Although it was at the centre of the subprime storm, the wider group has weathered the financial crisis of 20072010 better than other global banks.

According to Bloomberg, "HSBC is one of worlds strongest banks by some measures". When HM Treasury required all UK banks to increase their capital in October 2007, the group transferred 750 million to London within hours, and announced that it had just lent 4 billion to other UK banks. In March 2009, it announced that it had made US$9.3bn of profit in 2008 and announced a 12.5bn (US$17.7bn; HK$138bn) rights issue to enable it to buy other banks that were struggling to survive. However, uncertainty over the rights' issue's implications for institutional investors caused volatility in the Hong Kong stock market: on 9 March 2009 HSBC's share price fell 24.14%, with 12 million shares sold in the last few seconds of trading. 2010 to present

On 11 May 2011 the new chief executive Stuart Gulliver announced that HSBC would refocus its business strategy and that a large-scale retrenchment of operations, particularly in respect of the retail sector, was planned. HSBC would no longer seek to be 'the world's local bank', as costs associated with this were spiralling and US$3.5bn needed to be saved by 2013, with the aim of bringing overheads down from 55% of revenues to 48%. In 2010, then-chairman Stephen Green planned to depart HSBC to accept a government appointment in the Trade Ministry. Group Chief Executive Michael Geoghegan was expected to become the next chairman. However, while many current and former senior employees supported the tradition of promoting the chief executive to chairman, many shareholders instead pushed for an external candidate. HSBC's board of directors had reportedly been split over the succession planning, and investors were alarmed that this row would damage the company. On 23 September 2010, Geoghegan announced he would step down as chief executive of HSBC. He was succeeded as chief executive of HSBC by Stuart Gulliver, while Green was succeeded as Chairman by Douglas Flint; Flint was serving as HSBC's finance director (chief financial officer). August 2011: Further to CEO Stuart Gulliver's plan to cut

$3.5 billion in costs over the next 2 years, HSBC announced that it will cut 25,000 jobs and exit from 20 countries by 2013 in addition to 5,000 jobcuts announced earlier in the year. The consumer banking division of HSBC will focus on the UK, Hong Kong, high-growth markets such as Mexico, Singapore, Turkey and Brazil, and smaller countries where it has a leading market share. According to Reuters, Chief Executive Stuart Gulliver told the media, "There will be further job cuts. There will be something like 25,000 roles eliminated between now and the end of 2013." In August 2011 "to align our U.S. business with our global network and meet the local and international needs of domestic and overseas clients", HSBC agreed to sell 195 branches in New York and Connecticut to First Niagara Financial Group Inc for around $1 billion and announced the closure of 13 branches in Connecticut and New Jersey. The rest of HSBC's U.S. network will only be about half from a total 470 branches before divestments. On 9 August 2011, Capital One Financial Corp. agreed to acquire HSBC's U.S. credit card business for $2.6 billion, netting HSBC Holdings an estimated after-tax profit of $2.4 billion. In September it was announced that HSBC seeks to sell its general insurance business for around $1 billion.

In 2012, HSBC was the subject of hearings of the U.S. Senate permanent subcommittee for investigations for severe deficiencies in its anti money laundering practices. On 16 July the committee presented its findings. Among other things it concludes that HSBC has been transferring $7 billion in banknotes from its Mexican to its US subsidiary, much of it drugs related, was disregarding terrorist financing links and was actively circumventing U.S. safeguards to block transactions involving terrorists, drug lords, and rogue regimes, including hiding $19.4 billion in transactions with Iran. In July 2012 HSBC came under investigation for allegedly assisting in the money laundering of terrorist money, after a probe by the US Federal Reserve and Office of the Comptroller of the Currency found that there was "significant potential for unreported money laundering or terrorist financing". On 11 December 2012, HSBC agreed to pay a record $1.92 billion fine in this money laundering case. "Bank officials repeatedly ignored internal warnings that HSBC's monitoring systems were inadequate, the Justice Department said. In 2008, for example, the CEO of HSBC Mexico was told that Mexican law enforcement had a recording of a Mexican drug lord saying that HSBC Mexico was the place to launder money." The

DOJ, however, decided not to pursue criminal penalties, a decision which the New York Times labelled a "dark day for the rule of law." "We accept responsibility for our past mistakes. We have said we are profoundly sorry for them, and we do so again." HSBC Chief Executive Stuart Gulliver said.

HSBC IN INDIA
HSBCS origins in India date back to 1853,when the mercantile bank of India was established in Mumbai. The bank has since ,steadily grown in reach and service offerings, keeping pace with the evolving banking and financial needs of its customers. HSBC Insurance Brokers (India) Private Limited is licensed by the Insurance Regulatory Development Authority (IRDA) to operate as a composite insurance broking company, Which will function as a direct and reinsurance broker.

HSBC As Private Bank


HSBC Private Bank offers private banking and wealth management services to wealthy individuals and their families.

With a global network designed to open doors to international expertise, we have the people to link your wealth to a world of financial expertise. Manage your wealth. Develop and protect your wealth for future. Manage the impacts of wealth.

Commercial banking The Hongkong And Shanghai Banking Corporation Limited (HSBC).
Personal banking
HSBC offers a wide range of retail banking and wealth management services ,including personal lending and deposits products, through its branch network in Ahmadabad, Bangalore, Chennai, Chandigarh, Coimbatore, Gurgaon, Mumbai, New Delhi, Noida, Pune, etc Also offered branch-wide are international gold and classic credit cards VISA and Master Card and debit cards from Visa. Customers have access to 24-hour banking services through an extensive network of automated teller machines (ATM), an integrated call center, and internet banking online@hsbc.

Non Resident Indian Banking


HSBCs Non Resident Indian Banking(NRI) centers located in Asia-Pacific, the Middle East, Europe and North America, together with HSBCs offices worldwide, provide the international Indian Diaspora access to a range of products and services. These include NRI related investment (both international and domestic), transactional and deposit products, together with a full range of personal and private banking products in India and overseas. Internet banking also provides easy access to HSBCs services.

Sustainability
For HSBC, being sustainable means managing our business across the world for the long term. That means achieving sustainable profits for our shareholders, building long-lasting relationships with customers, valuing our highly committed employees respecting environmental limits and investing in communities.,

Financial planning services

Services include investment and custodian management and access to stock broking and insurance services, which are offered to resident as well as non resident Indian.

Corporate Banking
HSBC has well established, long term corporate banking relationships with large domestic Indian corporations and foreign multinationals operating in India

Business Banking
HSBCs extra mile business Banking offers two types of account to small and medium sized business. The business account and the business vantage account. Services include business phone banking, business doorstep banking and multi branch business banking.

Institutional Banking
Working closely with group offices in India and overseas, trade services, payments and cash management, treasury and capital markets, custody and clearing, and correspondent and electronic banking activities are offered to banks, financial institutions, securities houses, insurance

companies, asset management companies and other non-banking companies, non government and development organizations operating in India.

Treasury And Capital Markets


Clients consistently rate HSBCs treasury business as one of the best in India. Its dealing room in Mumbai is one of the largest in the country, serving clients in Mumbai and in the major metropolitan centers across the country. It provides a comprehensive range of products which include foreign exchange, money market and fixed income products and derivatives in both rupees and major currencies.

Custody And Clearing


The leading custodian in Asia, HSBCs custody and clearing services are available in 28 markets in Asia-pacific and the Middle East. With experienced staff and the latest technology, HSBC is the premier provider of subcustodian and clearing services to foreign institutional investors(FIIs) in India.

Technology

The HSBC group develops and applies advanced technology to the efficient and convenient delivery of banking and related financial services. In India, the group provides: Self service banking with over 150 In- branch and off-branch ATMs and 24-hour phone banking. Trade and corporate banking services with real-time access to a centralized information database instantaneous through online connections between all branches.

Asset Management
HSBC Asset Management (India) private limited provides a comprehensive range of investment management solutions to a diverse client base and is committed for aiming to deliver consistent investment performance, world-class service and a broad range of solutions for all types of investors. Our range of offerings in India comes under two broad categories Mutual Fund and Portfolio Management Services.

HSBC Global Resourcing

HSBC global resourcing is the largest, captive, banking and financial services off shoring organization in the world. A vital part of the HSBC groups global strategy, global resourcing plays a key role in delivering shareholder value and seamlessly integrates and helps the group remain competitive in the ever changing world of banking and finance. Global resourcing is present in India as HSBC electronic Data processing India pvt. Ltd., and operates out of 7 group service centers (GSC) in Hyderabad, Bangalore, Kolkata, and Vishakhapatnam.

Insurance
HSBC Insurance Brokers (India) pvt. Ltd. Is licensed by the insurance regulatory development authority (IRDA) to operate as a composite insurance broking company, which will function as a direct and a reinsurance broker.

Data processing
HSBC operations and processing Enterprise (India) pvt. Ltd.., through two centers in

Mumbai and Chennai provides operational processing services for HSBC offers in India.

Private Equity
HSBC private Equity Management (Mauritius) Limited a subsidiary of HSBC Private Equity (Asia) Limited in Hong Kong, has a liaison office in Mumbai. The company specializes in the provision of equity capital to unlisted growth companies in India and Sri Lanka.

Audit Service
HSBC professional services (India) private limited provides internal audit services to the HSBC groups internal audit units worldwide, with particular emphasis on the IT, Treasury, Asset Management, Private Banking and Insurance functions.

Investment Banking
HSBC securities and capital Markets (India) private limited has two main business lines. its institutional and proprietary broking business is based in Mumbai and, has seats on two of Indias premier stock exchanges, the Bombay stock exchange and the national stock exchange.

It deals in Indian securities for both Indian and International institutions and for select retail clients and is backed by an extensive research team.

Software Development
HSBC software development (India) private limited has established a software center in Pune to develop solutions for HSBCs group offices worldwide.

HSBC Invest direct (India) Limited


HSBC Invest direct (India) Limited (HIDL) with its headquarters in Mumbai, has a panIndia presence and through its subsidiaries, offers a range of products & based services that include stock broking services, Investment advisory, distribution of financial products and securities related financing (NBFG), to individuals and corporate.

SUMMARY
We are the world's local bank. In March 1865 HSBC opened its doors for business in Hong Kong and today it welcomes customers across the globe as the world's local bank. The HSBC group has an international pedigree which is unique. HSBCS origins in India date back to 1853,when the mercantile bank of India was established in Mumbai. HSBC Private Bank offers private banking and wealth management services to wealthy individuals and their families. Internet banking also provides easy access to HSBCs services. Today HSBC remains the largest bank in Hong Kong, and recent expansion in Mainland China, where it is now the largest international bank, has returned it to that part of its roots.