RBL Bank evaluates broking, MF foray as part of expanding capital market activities

Private sector lender RBL Bank is evaluating a foray into the broking and asset management space as part of its move to expand capital market activities a top official said on WednesdayMaking it clear that no decision has been reached on the subject its managing director and chief executive R Subramaniakumar said the bank a subsidiary of UAEs Emirates NBD will see which activities can be done internally which can be handled at the group level and the separate units which it needs to formAll the plans are under evaluation Subramaniakumar told PTI declining to share a timeline by when plans will be firmed upActivities like the asset management company or mutual fund and also advisory businesses like retail broking and institutional broking will have to be outside of the bank through specialized unitsHe said various plans are under radar and it is too premature to comment on any questions like whether the bank flush with capital will choose to acquire an existing player or build the business ground upA slew of its peers across both public and private sectors have dedicated subsidiaries engaged in such activitiesSubramaniakumar said the Emirates NBD group already has a presence in the capital markets space in India and the bank will be taking the same into consideration while deciding its courseRBL Bank is also proposing to enter the custodian and settlement services business he said adding that while it has started work on it it will take up to three quarters to get it on the groundHe also said that the bank has also started merger and acquisition finance in a small way already hinting that the activity will grow with timeWhen asked about its wealth management plans Subramaniakumar said the bank is investing in the service launched over six months agoStating that the bank already has a number of relationship managers to deal with the subject he said the focus is now on deepening the activity both geographically and across asset classesInsurance regulator IRDAIs proposed revamp of distribution may have an impact on revenues if implemented as it is but the increase in volumes will help compensate he said stressing that the norms are not a deterrent when it comes to expanding in the wealth management spaceThe banks overall credit growth will be 4 percentage points higher than the systems credit growth Subramaniakumar saidWhen asked about concerns over return on assets raised by a section of analysts Subramaniakumar said the key metric is trending up as seen in its growth to 092 per cent from 04 per cent and expressed confidence it will continue that trendHe explained that credit costs have normalised for the bank and net interest income is growing at a healthy 25 per cent which will help grow net profits and ensure RoA growth continuesThe bank opened 22 branches on Monday to take its overall network to 650 branches the MD said adding that it will be adding another 30 branches more before the end of the fiscalThis story has been sourced from a third party syndicated feed agencies Midday accepts no responsibility or liability for its dependability trustworthiness reliability and data of the text Midday managementmiddaycom reserves the sole right to alter delete or remove without notice the content in its absolute discretion for any reason whatsoever