Mumbai, Sept 28: Private sector lender Yes Bank today said that it has received the Reserve Bank nod to enter the equity broking business. The new-age lender, amongst the last of the banks to be granted licences, will invest up to Rs 25 crore and enter the highly competitive fray in early FY14, sources said.
A majority of its rivals are already into the equity broking business and addition of the product will add to Yes Bank's bouquet of offerings. The bank's Founder, Managing Director and Chief Executive Rana Kapoor said it has been granted approval by the Reserve Bank to establish a brokerage subsidiary and the timing for the same coincides with the bank's thrust on retail.
The composition of the low-cost current and savings account for the bank is among the lowest in the industry and it has been leveraging on the savings bank interest rate deregularisation by the RBI to gain more deposits by offering higher interest rates. "The latest offering will also further drive the Bank's Casa momentum, besides opening up avenues for fee income," it said in a statement.
A slew of pure-play brokerages have been bleeding since past one year due to high volatility in the market and lowering of commissions by the exchanges. Mandates for takeover of some brokerages are also floating in the market.