Total income of the bank increased by 31 per cent to Rs 1,248 crore (Rs 954 crore) while operating expenses increased by 16 per cent to Rs 298 crore (Rs 257 crore). The total assets of the bank increased by 38 per cent to Rs 12,666 crore (Rs 9,199 crore ). The advances increased by 54 per cent to Rs 4,302 crore (Rs 2,795 crore) and deposits rose by 37 per cent to Rs 8,755 crore (Rs 6,387 crore).

The capital adequacy ratio increased to 10.30 per cent from 9.31 per cent the previous year. The average cost of funds for the period was at 5 per cent with the advance to deposit ratio at 49 per cent compared to 44 per cent the previous year. Non-performing assets (NPAs) for the period was at 1.04 per cent. HSBC plans to increase the market share of its commercial banking business in India from the current 20 per cent to around 40 per cent in the next two years. The expansion plans also include launching of Internet banking by November, expanding branch network to Chandigarh and Pune and increasing ATM network from 80 to 250 by 2003. The bank has also also applied for permission to set up a separate insurance agency/broking firm. It also plans to establish a non-banking finance company (NBFC) and also establish a primary dealership.

The HSBC group world-wide has spent $250 million to develop a middleware system for offering interactive banking in association with IBM. The system, which is already functional in Hong Kong, will be rolled out in the UK, Singapore and India. In India, the bank will be spend Rs 59 crore towards technology initiatives in addition to Rs 58 crore spent in the previous two years. .Also, around 17 per cent of the total operating expenses is spent on technology. The bank's credit card business has increased to 3 lakh from 40,000 in 1997-98. The card base is expected to grow to 4 lakh by the year-end. It also plans to expend its private client service to Chennai and Hyderabad.