HDFC Securities enters discount brokerage to gain market share


HDFC Securities is building its discount brokerage architecture to compete with new-era firms like Zerodha, which are nibbling away market share from established players in the industry, said CEO of its parent company HDFC Bank, Shashidhar Jagdishan .

Over the next two or three years, the company aims to capture the market, Jagdishan said, adding that the largest private sector lender was not considering selling stakes in the brokerage.

It may be noted that in recent years, discount brokerage houses that help an investor complete transactions by paying a fraction of the commissions and fees have become popular with investors, forcing many established players to come up with deals. similar offers.

“I’m happy to say that our own HDFC Securities has a plan as well, and you’ll see that countering the threats from discount brokerage houses with its own neo or discount-type architecture,” Jagdishan told the bank’s shareholders at the meeting. its annual general meeting on Saturday.

He added that HDFC Securities would be responsible and expressed confidence that it would gain market share in 2-3 years.

The company, which posted a 94.9% growth in its June quarter net profit to 260.6 crore, is doing extremely well, Jagdishan said.

According to the filings, HDFC Securities’ total income rose 67.3 percent to 457.8 crore in the June quarter from ₹ 273.7 crore in the previous year period. It had 215 branches in 147 towns / villages across the country.

Meanwhile, speaking at the bank’s AGM, its non-executive chairman, Atanu Chakraborty, said the largest lender in the private space was set to scale up the adoption agenda and technology transformation by evolving infrastructure, disaster recovery resilience, information security improvements and the establishment of an oversight mechanism. .

He said the bank has taken the regulatory actions stemming from the challenges faced on the technology in the right spirit, and the management has shown grace and humility.

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