• Investment World
• eWorld
• Brand Line
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest
• The New Manager

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Cross Currency

• Rates
  
  

Shipping

• Ports
  
  

Archives

• Yesterday
• Datewise
• Resources
• In Focus
• In Depth

Group Sites

• The Hindu
• Business Line
• Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

C.J. Punnathara

Kochi , June 30

The Reliance-Anil Dhirubhai Ambani Group (R-ADAG) company, R Trade will be setting up stock trading kiosks at the branches of South Indian Bank (SIB) spread across the country, to facilitate on-line equity trading for customers of both the financial services company and the bank.

"The last mile technology compatibility checks are in progress in what is in all likelihood the first-time synergy of operations between two separate entities, a bank and an online stock broking firm. The roll out of the new venture should begin before the end of July," senior sources in SIB said. R Trade kiosks will be using SIB payment gateway and its depository services to facilitate real time on-line transactions.

The new tie-up is expected to provide a major boost to R Trade's online trading aspirations, as major players such as ICICIdirect and kotaksecurities.com have been jostling for position in a rapidly growing market, backed by the strengths of their respective banks. The tie-up with the fast growing private sector bank, which already has presence in 19 states and Union Territories would enable R Trade to consolidate its position in the rapidly growing online trading.

The extension of Core Banking Solutions to 360 of the 450-odd bank branches was one of the key factors, which made the project feasible for both the partners. SIB will be extending CBS to the remaining 90-odd branches before the end this fiscal.

R Trade will take space from SIB on lease where the kiosks will be set up and customers can undertake real time touch-screen stock market operations using their unique passwords. "No outsiders need be present at the bank premises to facilitate the trade, though some bank staff will be trained to assist the customers to successfully execute their transactions," bank sources said.

It is a win-win situation for the bank and R-ADAG Company since a large number of customers of the financial services company are expected to become the bank's customers and vice-versa. "The predominant brand image of the Anil Ambani Group and persistent marketing campaign are expected to provide great dividend to this new initiative and instil the investment habit among a growing section of the population," bank sources said. In one stroke, R Trade is expected to grab visibility through hundreds of outlets and garner large segment of retail customers, especially in South.

To start with, the bank will commence the roll out of R Trade kiosks at its major metro and city branches. Both the investment and operations costs of the kiosks will be borne by R Trade and they will also pay the monthly rent for the space leased out to them.

The kiosks are expected to support both R Trade Securities and R Trade Commodities, the stock and commodity broking outfits set up by the Group, besides offer a one-stop shop for all financial products such as Mutual Funds, insurance products and tax savings schemes.

R Trade has already signed agreements with UTI Bank, ICICI Bank, HDFC and IDBI Bank for online trading. However, the latest tie-up is expected to be different because both SIB and R Trade will be fostering and promoting business of each other from the same business premises.

More Stories on : Financial Services | Private Banks | E-Commerce & E-Business | Stock Markets

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Motilal Oswal plans $100 m pvt equity fund

Copyright © 2006, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line