In a press release issued here today, HSBC Holdings Plc said: "This major initiative is designed to achieve full recognition for HSBC as one of the world's largest and most successful financial services organisations", and added, "HSBC Holdings Plc plans to complete most of the changes by January 1, 2000, at an estimated cost of $50 million, excluding advertising".The HSBC group's wholly owned commercial banking subsidiaries -- HongkongBank, HongkongBank Malaysia, HongkongBank of Canada, British Bank of the Middle East (BBME), Midland Bank, Banco HSBC Bamerindius, HSBC Banco Roberts -- will also do likewise, and will be referred to as `HSBC'. It was, however, clarified that these banks will continue to retain their separate legal names even as they are termed `HSBC' for marketing purposes.

Subsidiaries already using `HSBC', like HSBC Investment Bank, will also adopt the new brand while certain majority-owned subsidiaries are to incorporate `HSBC' into their existing legal name, but no change is to be made in those companies in which HSBC Holdings Plc has a minority interest.

The HSBC group had previously taken an endorsed approach to its branding, and the `Member HSBC group' formed the umbrella brand. In 1983, the HSBC group introduced the hexagon as a symbol, which subsequently came to adopted worldwide.

Says HSBC group chairman John Bond: "Over the years, the HSBC group has grown both organically and by acquisition. Historically, we have operated under different names in different places. "Our policy of retaining the separate identities of the companies we acquired because they were well-known names in their local markets, served us well for many years. However, times have changed and we must change with them".

HongkongBank's chief executive officer David Eldon said: "It makes good commercial sense to promote the strengths, which we gain from membership of the HSBC group." He said that he "saw the new brand as an exciting step in our our continued development".

Under the new scheme of things envisaged by HSBC Holdings Plc, branch signage and interiors, advertising and marketing materials will all be unified to build and reinforce the brand.

Reasoning the new move towards a common symbol and group identity, Bond said: "The HSBC group operates in a global market place. Increasingly, the financial services industry, and modern communications are borderless. "More and more people travel internationally...our strategy calls for the development of a strong consumer brand".

The HSBC group has a presence in India through HongkongBank with its 22 branches and BBME with two. Investment banking activities are operationalised by HSBC Capitals Markets India Private Ltd and HSBC Securities India Holdings Ltd and the liaison office of HSBC Private Equity Management.