The Hindu Business Line : SBI Caps opens retail broking arms

(From right) Mr A. K. Purwar, Chairman, SBI, Mr T. S. Bhattacharya, MD, SBI, and Mr Indrajit Gupta, Managing Director, SBI Caps, at a press conference in Mumbai on Thursday. - - Paul Noronha

Mumbai , Sept. 29

SBI Capital Markets Ltd today launched retail equity broking services for retail and institutional clients through a new subsidiary, SBI Cap Securities Ltd (SSL).

The subsidiary will begin with 12 retail broking centres in six major cities across the country. It would be increased to 30 centres by March 2006, said Mr Indrajit Gupta, Managing Director and Chief Executive Officer, SBI Caps, at a press conference.

The six cities where the new broking house will begin operations are Mumbai, Delhi, Chennai, Kolkata, Hyderabad and Chandigarh.

For now, SSL will offer equity trading in the cash segment, some debt products and RBI bonds. It will offer derivatives in a few months and e-broking within one year, Mr Gupta said.

SBI Cap has also obtained a portfolio management service licence and may offer this service through the broking centres at a later date, he said.

SSL hopes to start making profits by 2006 and become one of the top three retail broking outfits in the next three years. An in-house research team of 10 analysts would support the broking service.

"We feel there is a definite case for taking retail to the hinterland of India. We hope to have 3,00,000 retail clients in three years," Mr Gupta said. He however, said the new company may or may not ride on the SBI branches to achieve this.

The investment for SSL in terms of technology and manpower is about Rs 10-15 crore, he said.

"We are also looking at franchises, because it is the fastest way to grow, but this would come later," he said.

SSL's authorised capital is Rs 100 crore and paid-up capital is Rs 25 crore, said Mr V. Gopinathan, Executive Director of SBI Caps who has been appointed as Managing Director, SSL.

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