Foreign lenders do not wish to become a State Bank of India having a presence across the country with a large network by converting into fully-owned subsidiaries, HSBC India said.

Stuart Milne, chief executive officer of HSBC India, said operating as branches or as a fully-owned subsidiary would make no difference to the company's strategy.

Speaking on the sidelines of recently concluded annual banking conference, Milne said, "Whether you operate as branches or whether you operate as a fully-owned subsidiary, makes no difference to our strategy here. Our India strategy remains the same."

He added that he didn't think that most overseas lenders operating in India actually want to operate a State Bank of India.

Milne's comments clearly showed that HSBC is reluctant to convert into a wholly owned subsidiary (WOS), as the Reserve Bank of India (RBI) wants foreign banks to become.

India's central bank last month announced that those foreign banks which will convert into WOSs would be given a near-national treatment in India, after they fulfill some conditions. However, the central bank also gave foreign banks, which have been operating in India before August 2010, the option of continuing to operate as branches.