Broking incomes see tepid growth in FY20 due to volatility, lower volumes

High-yielding delivery-based transactions yet to see strong pick-up

Heightened market volatility, combined with lower delivery-based volumes have weighed on broking incomes as large and mid-sized players reported flat to negative growth in 2019-2020 (FY20). 

“The industry has been seeing fall in broking yields as delivery-based volumes are still on the lower side. At the same time, brokerages have remained thin amid heightened competitive intensity,” said a senior executive of a brokerage. In FY20, the market benchmark Sensex corrected over 22 per cent over concerns of global and domestic slowdown. 

For ICICI Securities, which is among the largest players, broking related income grew 1.57 per cent in FY20. IIFL Securities saw