Bank-owned brokerages to show up to 20% profit growth in FY22: Icra

Surge in trading volumes to drive better show; huge competition from discount brokerages a challenge; capital market linked loan book shows 100% CAGR

Bank-owned broking entities in India are expected to post about 17-20 per cent growth in profit in FY22 on a surge in trading volumes, retail participation and margin funding.

According to rating agency Icra, the net operating income (NOI) of bank brokerages under its coverage could grow by 20-25 per cent year-on-year (YoY) in FY22 supported by steady broking income and distribution businesses. The ramp-up of other capital markets related businesses could further support the earnings profile.

They posted an all-time high net profit of Rs 3,246 crore in FY21, up 79 per cent. Also, their capital market-related lending business