Global banks are planning cut-downs slashing salaries and staff to gain back lost ground as revenue take a dive in 2011(avdantages.us). 

Interest rates rise in India on the other hand is creating another bag of worries for banks like HSBC whose demand is very much dependent on prevailing rates vs a vis stheir offering. Public demand for credit in India however has been shored up by NBFC loan demand(up 56%) and that is personal loans(unsecured, 17%) as public sector banks hold on to larger market shares in the domestic market. 

As of June 17,  when outstanding balances rose to 42 lakh crores ( a dip from an even higher 44 lakh crores in May) and deposits grew to 54 lakhs crores ( 56 lakh crores as of May) the incremental credit deposit ratio had come down to 44% from 88% in March, implying that banks would now be more conservative in the CD ratios even as higher rate deposits interest payous do not mean any significant dent in Net Interest Margins. With Credit growth at 21% and closer to 22% for the quarter, Banks are set for a surrise showing in the quarter. However HSBC and Stanchart would continue a slower, tougher and less prfitable showing along with other MNC banks for their urban 10% namarket share as swapped credit ratios were higher than 25-26 in relation to their Net worth in March

NBFC s are being used as intermediaries as 30% of NBFC loans get securitiesed by banks and realtors make a bee line for NBFC loans that come at a similare cost in the higher interest rate regime when compared to any bank offers if were still available to real estate. 

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