Stuart Davis and IIT Delhi alum Rajat Monga , CEO of Yes Bank ( the former is the India cEO of HSBC) came out strongly in financial headlines of the day expecting 25%oflastyears record remittances of $58 bln to India, adding to the now uniformly high NRE / NRO rates revised by HDFC Bank, ICICI, Yes and apparently HSBC too.
HSBC has a better network and walk in atmosphere also better in many global locations. However remittances are usually sourced from known cities in the USA and for Indian banks to count to their deposits from online channels may still not be more than 10%
For banks like YES and HSBC, new to the NRI game ( or even domestic deposits for Yes, which is likely below Rs 1000 crores in CASA by March 2012 despite a higher rate and a good ramp up) creating traction for new deposits to their branch/bank will take more than a 0.25% premium over other banks but both may be facilitated by short term travellers also in control or influecing these deposits made from the USA currently
$15 bln added from NRI deposits would add a significant 2% to the overall bank deposit-assets (liabilities) in India