Financial Daily from THE HINDU group of publications
Monday, Oct 17, 2005
Financial Daily from THE HINDU group of publications Monday, Oct 17, 2005 |
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Money & Banking
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Investment Banking Markets - Financial Services Marketing - Rural Marketing SBI Caps to tap rural biz through parent's network Our Bureau
Bangalore , Oct. 16 SBI Capital Markets Ltd (SBI Caps) plans to expand stock broking services to the rural regions. Speaking to reporters here, Mr K. Ashok Kini, SBI's Managing Director, said that SBI Caps hoped to open at least 40 branches by next March. Mr Kini was here to inaugurate the SBI Caps' stock broking office. "We hope to have at least 100 branches by the 2007-end," he added. The branches would include semi-urban and rural regions. SBI Caps is the investment-banking arm of State Bank of India. For SBI Cap's rural foray, he said, it would take the support of its parent, which had extensive network of rural branches. But he added, "We will also take the brick and mortar route for creating this network". In addition, he said the bank also planned to use a network of franchisees electronically linked to the SBI Caps' network. SBI Caps was making this expansion to channelise the savings of the rural population into the capital markets, he said. SBI Caps hopes to achieve this objective over the next three years, when its customer base is targeted to increase to at least 3 lakh. Currently, most stock broking, merchant and investment banking arms were concentrated only in the metros or in dense urban regions. Consequently, a substantial part of the customer base accretion was expected to come from the rural sector, he added. So far, SBI Caps has rolled out its broking services in 13 locations. Through these broking terminals, SBI Caps hoped to be a one-stop shop, offering a range of services to the investors in the rural regions, he added. SBI Caps would provide broking service at competitive rates, he said, adding that its research works would also be made available to the customers. Most of rural India's investments are parked as bank deposits or in postal savings.
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