YES Bank gets RBI nod to enter equity broking biz

Beena Parmar Updated - November 17, 2017 at 05:23 PM.

yesbank

YES Bank today said it has received the Reserve Bank of India’s (RBI) approval to foray into securities broking business.

The private sector lender will offer its retail customers a complete suite of banking services, including savings, investments, wealth and loan products. The bank expects to launch the securities broking business operations during FY'13 and FY'14.

Brokerage subsidiary

According to current RBI guidelines, the bank will have to float a new subsidiary to domicile the equity broking business. The bank will invest about Rs 25 crore in setting up the brokerage subsidiary.

The retail broking services from YES Bank will be a complementary service offering for retail customers and will increase the scope for higher fee income and drive the bank’s Current and Savings Account (CASA) share.

Rana Kapoor, Founder, Managing Director and Chief Executive Officer, YES Bank, said, “We are pleased to be granted approvals by the Reserve Bank of India for establishing a brokerage subsidiary. The timing is opportune given our thrust and focus on retail banking.”

The bank will compete with players like ICICI Securities, HDFC Securities, Kotak Securities and SBI Capital Markets that operate their securities broking business for the respective banks.

The approval comes at a time when the brokerage firms are going through a tough time due to the high volatility in the equity markets and lower commissions by the exchanges.

>Beena.parmar@thehindu.co.in

Published on September 28, 2012 08:25