Foreign lender, HSBC is planning to re-enter into the unsecured retail lending segment but in a very selective and careful manner.

According to Mr Stuart Davis, CEO, HSBC India said, "We will offer unsecured personal loans selectively to our customers and not in the open market as we did earlier."

The unsecured loan portfolio of the bank stood at $526 million in 2010 as compared to $864 million in 2009.

The bank's Indian operations posted profit before tax (PBT) of $679 million as compared to $374 million in 2009.

"Winding down of the unsecured loan book and recoveries in corporate loans helped improve the asset quality," Mr Davis said.