Canara to tap broking biz;SBI to scale up ops

Recognising the potential in the broking space, state-run Canara Bank is mulling a foray in the sector while State Bank of India has plans to scale up its business manifold by next year.

Canara Bank, plans to foray into broking along with its wholly-owned broking subsidiary, Gilt Securities Trading Corporation.

Presently, SBI's services in broking is limited to online equity trading. However, the bank will shortly enrich its portfolio by enabling customer-access to mutual funds and IPOs, a company official said.

Kolkata-based United Bank is also understood to have zeroed in on leading broking firm IDBI Capital Markets as its partner from among a group of bidders, including Sharekhan. The official announcement is expected within a month, an official connected with the development told PTI.

"The deal is most likely to emerge in favour of IDBI Capital. The announcement may happen in March and operations would start in a few months time," the official said.

SBI started its broking operations in 2005 by partnering with Motilal Oswal and with its own subsidiary, SBI Cap Securities last year.

Presently, SBI has a minimal presence in the segment, having only around 20,000 customers, but plans to scale up its business manifold by 2009.

"We are aiming to be among the top three players in the next two years," a senior SBI official said.