The Indian operations of HSBC have posted a 44% drop in the net profits of the bank for the year ended 31st December 2009. This decline can be accounted to as a result of Rs. 1000 crore loss incurred by the retail banking segment of the bank. The commercial banking segment of the bank has also showed a downtrend. However, HSBCs profits from its non banking services like brokerage and asset management has improved.

Despite making losses, the Indian unit of the bank continues to be the ninth largest profit generator for HSBC.

The retail banking service of HSBC, also termed as personal finance service by the bank reported a loss of $219 million against a loss of $155 million last year. The bank has reported losses of $444 million in the past three years - from 2007-2009. This would be the one of the largest losses by any bank in retail operations in India.

The commercial banking operations in India have posted losses of $41 million against a profit of $118 million last year. But the bank's profits from other business in the country nearly doubled to $240 million against $123 million in 2008.

There has been a regular decline in the net loans and advances by HSBC in India in the past three years. The figures generated in these three years include $7.22 billion in 2007, $6.24 billion in 2008 and $4.89 billion in 2009. There has been a fall in Gross loans and advances across all segments - mortgages fell 20.5% to $883 million, other retail or personal loans fell to $864 billion, a 41.7% decline, other property-related loans fell 7% to $458 million while other loans such as commercial, international, trade and other loans fell 9.9% to $3 billion.