Speaking to The Financial Express, HSBC chief executive officer (CEO), Indian operation ZJ Cama said that the bank is planning to market life and non-life insurance products of other companies and act as a broker of insurance companies. Negotiations in this regard has been intiated with six private insurance companies which include ING, Royal Sun, Alliance, Canada Life, Max Life and Reliance.

The bank is also negotiating with two public sector companies LIC and GIC, Mr Cama pointed out and added that in the wake of privatiasation of insurance sector in the country, public sector insurance companies are gearing up to face the competetion and the process of improving their products and services is also being started.

"We will also look at redesigned product of these two companies".HSBC will conduct market survey of its customers requirement before finalising the insurance companies. Mr Cama mentioned that "we have a customer base of over 7,50,000. First, we will look at the requirement of our customers by conducting the market survey and on the basis of its outcome we will design the products and select the companies which will satisfy our customers needs".

Mr Cama said that HSBC will file an application to Insurance Regulatory and Development Authority (IRDA) for licence to undertake broking activities of the insurance companies.

The bank is expected to file the application by month end this year and will commence its operation by the first quarter of next year.HSBC is all set to foray into mutual fund business. The bank has recently received licence from SEBI to set up an asset management company. The new company is expected to be operational by the end of the last quarter of this financial year. At present, the bank is working as a third party mutual fund and provides mutual funnnd products of other companies to its customers.Mr Cama was here to inagurate bank's 27th branch. The bank is planning to expand its branch network by opening more branches in Chandigarh, Pune and Bhubaneshwar and also increase its ATM network from present over 80 to 250 by end 2003. Internet banking will be introduced for its customers in the first quarter of next year.Initially net baking facilities will be made available to personal banking segment and then it will be extended to other segments.