Current a/c problems exaggerated: HSBC

HSBC veteran HitendraDave took charge as India CEO last year. In an interview, he speaks of plans to expand retail and why India’s current account problems are overstated. Excerpts:

- [e-mail]

How do you see the economic recovery?

Initially, when there was a bit of buoyancy in demand, people were unsure whether to project that into the future or whether it was due to pent-up demand and revenge shopping. Now that the demand has sustained, there is a view that something structural is happening, causing consumers to keep shopping. The level of hope and optimism I see is unsurpassed. At the same time, there is a broader phenomenon of those with higher incomes and those employed in formal sector spending more, while FMCG sales are struggling because of inflation and other aspects. So, just as the top half is still in surplus after spending, it is safe to assume the bottom half has not yet recouped. As a country, we have to be mindful of these two pictures.

What was the idea behind the L&T MF acquisition?