The Indian operations continue to be the seventh largest contributor to the group's profits. Its advances book grew 17% to Rs 27,401 crore during the period from Rs 23,475 crore last year.

Stuart A Davis, chief executive officer, HSBC India , said: "The profit growth has been on account of growth across business lines. It is also a result of reduction in non-performing loans particularly on the retail side of the business.''

"Our strategy of selective lending, mainly to our existing customers, and largely on a secured basis has borne fruit as evident from a 86% drop in provisions, and our lower non-performing asset figures,'' he added. Net non-performing loans dipped to 0.91% during the year from 2.31% last year. The bank's capital adequacy stood steady at 18.03%.

Consumer banking business of most foreign banks was under strain due to the economic slowdown. Deutsche Bank sold its credit card operations to IndusInd Bank . The Dutch bank saw its profit rising 41% to Rs 630 crore during the year ended March 31, 2011.

Foreign banks like Citibank and Standard Chartered Bank have also been consolidating their unsecured lending book that includes personal loan and credit card. Citibank's net profit from India operations for the year ended March 2011 rose 66% to Rs 1,424 crore from Rs 860 crore a year ago.