Kolkata, Aug 7 (IANS) Organic growth would remain the focal point of Hong Kong and Shanghai Banking Corp (HSBC) India’s operations for the time being, said a top official here Thursday. “Organic growth remains a high priority for us,” HSBC India head Naina Lal Kidwai told reporters.

She added that the loan waiver environment created by the government was encouraging borrowers to default on their payments, which is hurting the banking sector.

“Loan waiver has created a tendency among borrowers to default, specially when the elections are around the corner, and this is hurting the industry,” Kidwai said.

Small and medium enterprises (SMEs) would remain the thrust area for the bank in the current fiscal.

HSBC India posted a 50 percent increase in total income and 41 percent in net profit for the year ended March 31, 2008. Total income rose to Rs.70.96 billion from Rs.47.20 billion in 2006-07. During the same period, net profit rose to Rs.11.92 billion from Rs.8.46 billion.

Kidwai said it would not be very difficult for the company to maintain the same growth level in the current fiscal.