JOIN USPrivate sector lender Yes Bank has initiated the process to set up a wholly owned subsidiary 'Yes Securities India Ltd’ to kick start its brokerage business by the second quarter of next fiscal, in effect, during August-September in the current calendar.
The bank’s senior president (financial management) Jaideep Iyer was quoted by a business channel as saying, “We are already offering 6-7 percent rate of interest in savings account and you are getting a demat account from the bank. Now, you will get our brokerage services. It will be a low cost and web-based model. If we acquire something, we can migrate them into Yes Bank customers.”
The bank is also considering acquisition of a small broking firm, a move seen as part of building customer base as a precursor to launching home loan products finally. Speculation is rife in market circles that the bank has already roped in top three executives for the broking arm and negotiating with a couple of small time brokerages but nothing has firmed up as of now.
Even as the process of business planning has begun, the focus will be basically on retail customers, not institutional ones. All the same, they may look for margin funding as well. Normally, brokerages allow margin funding facility to their best customers.