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Yes Bank may go for buy in securities broking biz

The bank expects to launch operations of the securities broking business during FY14

BS Reporter  |  Mumbai 

Ltd is likely to go for an acquisition in its Last month, the bank received the Reserve Bank of India (RBI)’s approval to foray into this business.

“We have some very attractive opportunities for inorganic growth and let’s say it’s under consideration. The team at is evaluating it but it is too early to comment at this stage,” said Rana Kapoor, managing director and a chief executive officer, “Retail broking is an area of thrust and we have no desire to be an institutional broker. We will build this as a complimentary product offering,” Kapoor said. The bank expects to launch operations of the during FY14.

The bank today also received a board approval to get into retail mutual funds. “shall be applying to and the Securities and Exchange Board of India for getting into it and we will hopefully in the next 12 months get into the business of mutual funds. Here again the rationale is to augment our retail offerings,” said Kapoor.

However, the insurance business is a proposition that believes is best played as a distributor. “We do not want to take on the capital burden and at the same time the manufacturing costs. I think we will be a better distributor than a manufacturer,” said Kapoor.

For an acquisition in securities broking business, cost will be a major consideration. “Our plan A is to do it on our own because it is not too expensive. All we need is a technology platform and then we will empower our branches to sell. By going inorganic it helps us to short-cut the process. Price is a major criteria,” said Rajat Monga, group president- financial and chief financial officer, “As a bank, we believe our strength is to build businesses not to buy businesses. There are so many businesses within the bank and each of them have been build by us. We should not be paying a great price in any case in this environment.”

First Published: Wed, October 24 2012. 00:22 IST
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