"We will grow in Asia through acquisitions and mergers as opportunities and pricing are more favourable than anytime in the past," Mehta said.There are more opportunities in countries like Thailand, Indonesia, Korea and Phillippines which did not exist before, he said, adding that the bank would, however, not compromise on asset quality. "We will not compromise on asset quality as that will affect our shareholders. Due diligence will be adopted in taking over assets," Mehta said.

On plans for India, he said the bank would aim at an "organic growth" by concentrating on selective tie-ups, improving the bank's presence and introducing new products.

"Acquisition is not on the agenda in India. We prefer outright ownership and it is still difficult inIndia with the existing regulations," he said.However, he said the country was an ocean of stability compared to other regions in Asia, though the tail effects of what was happening was visible here.

"Exports are down, corporate earnings lesser and business sentiments are not in the best of times here," he said. Mehta said he was taking his new job as a challenging exercise when the pressures on operating income were building up and with a sharp increase in volatility.He said he did not forsee any cognisable turnaround in the fortunes of Asia in the next one year.

"You have to be a brave economist to predict the future. However, the reasons for the crisis go beyond cyclical reasons. And these things don't go away in a short time," Mehta said.

He said the situation could get worse if Europe was also pulled into the quagmire and there were competitive devaluations of currencies.The new CEO of Hongkong Bank said the crisis in Asia had already started to reflect on the balance sheet of the bank, which isembedded in the region."The tiger economies have grown at a spectacular pace and there has been a staggering process of wealth creation in the region. We have grown with it. But the crisis has affected profits during last year and the first half of 1998," he said.

He said India was fortunate to be largely insulated from the crisis, which has seen money moving out of countries rapidly.