News: ABN Amro starts Indian retail broking services

(BL 25/05/2006) Mumbai - ABN Amro launched on Wednesday broking services for retail investors under its arm ABN Amro Asia Equities, which currently offers institutional broking in India.

The retail broking services would be launched in 15 cities, where the bank already has its presence; it hopes to target its 1.3 million strong client base for the new service.

Speaking to reporters, Ramesh Sobti, Country Executive, ABN Amro India, said, "This was one service missing from our suite of products. Retail business forms 60 per cent of our business in India, while commercial banking forms 40 per cent. We are likely to maintain this ratio, as retail is growing faster."

The bank is also looking to offer commodity trading through a separate subsidiary under ABN Amro Asia Equities, Sobti said. "We will look at commodity trading in the second phase, once there is more clarity on the guidelines in this regard. This would be in another 12 months' time."

The bank also has plans to start a non-banking finance company after the Reserve Bank of India comes out with its guidelines, said Jeroen Drost, Chief Executive Officer, ABN Amro Asia. India has been on a good growth path for the last couple of years due to a strong domestic economy, he said.

The features of ABN Amro's retail broking include a three-in-one account for trading, demat and savings account, option to trade through multiple channels such as online, offline and on the phone, access to research and timely advice, said Chitra Shringare, Senior Vice-President and Head - Retail Brokerage Services. The products include equities, cash and derivatives, IPOs and personal financial services, which would be rolled out in a phased manner.

Tie-ups with other financial institutions would be part of expansion in the second phase as would be opening offices independent of the bank's branches, Shringare said.