ABN Amro plans to start retail brokerage services in February

Dutch banking major ABN Amro Bank has decided to foray into retail brokerage services by February. Announcing the decision, the bank's executive vice-president and country representative Romesh Sobti said the bank plans to add a retail division to its subsidiary, ABN Amro Asia Equities.

The retail brokerage services would be available in the initial phase to all customers of the bank at its branch outlets. In the second phase, even market participants outside the existing client base will be serviced. Retail broking will be made accessible both on the electronic and physical dealing platforms across all channels, including phone banking and internet.

The current retail customer base of the bank stands at 1.2 million. The bank has opened eight branches in Panipat, Tirupur, Moradabad and Nashik in its bid to enhance its presence in off-metro regions.

Speaking of the bank's capital-raising plans, Sobti pointed out that ABN Amro has raised Rs 1,000 crore via the certificate of deposit (CD) route over the last couple of months.

In the current calendar year, the bank has infused Rs 650 crore via tier-II capital. It plans to infuse tier-I capital in mid-2006 in order to fund its growth strategies, Sobti said.

In terms of balance sheet size, the bank's retail and corporate businesses comprise of a 60:40 business mix, while in revenue terms, they strike a 70:30 balance. Sobti ruled out any possibility of an immediate lending rate hike but said that there was a need to manage the cost of funds in a better manner.