CRISIL has assigned its ‘BQ1’ broker grading to India Infoline Ltd (IIL). CRISIL’s broker grading reflects its opinion on the quality of operations and services provided by the graded stockbroker; the grading has a validity of one year. Brokers are graded on a five-point scale ranging from ‘BQ1’ to ‘BQ5,’ with ‘BQ1’ being the highest. The assigned grading reflects IIL’s effective external interface, robust systems framework, and strong risk management system. The grading also reflects IIL’s healthy regulatory compliance track record, and adequate credit risk profile.
Speaking at the occasion, Mr Nandip Vaidya, President – Retail Broking, India Infoline Ltd said, “We are pleased to receive the BQ1 grading from CRISIL, which is their highest. We believe that this is a testament to our continued focus on providing our clients with services of the highest quality and our strong emphasis on compliance and risk management.”
IIL’s external interface is marked by high quality of customer service, transparency in operations, and strong research capabilities. The company’s systems framework includes well-established policy for selection and monitoring of customers, sub-brokers, and franchise partners, and a well-defined business continuity plan. Furthermore, IIL’s operations are fully computerised; the company has implemented software, developed in house, which is capable of generating detailed and timely management information system reports. The company also has a strong risk management system marked by real-time monitoring of client exposures by a dedicated team of experienced risk management professionals. IIL follows strict margin norms, and maintains a pre-approved list of securities that can be accepted as margin. These norms are updated at regular intervals. IIL applies appropriate haircuts on the underlying stocks, for computing the trading limits for its clients. Although it has a policy for automated square-offs of client exposures in case of margin shortfalls, exceptions are made on the basis of client relationship and client’s credit history.
IIL also has a satisfactory compliance track record; minor non-compliances have been rectified. The grading also reflects the adequate credit risk profile of IIL and its group companies (the IIL group). The IIL group provides a wide range of financial services and products, including broking (retail and institutional equities, and commodities), wealth management, credit and finance, insurance, asset management, and investment banking services.
About India Infoline Ltd (Bloomberg: IIFL)
Incorporated in 1995, IIL is a registered member of the Bombay Stock Exchange Ltd (BSE) and the National Stock Exchange of India Ltd (NSE) for securities trading, and of Multi commodity exchange of India, National commodities exchange of India and Dubai gold & commodities exchange for commodities trading. Furthermore, IIL is a depository participant of central depository services limited and national securities depository limited. IIL offers broking services through both branches and franchises. As on September 30, 2009, IIL has over 500 branches and 1,200 franchises across India spread across 450 cities and towns.
For 2008-09 (refers to financial year, April 1 to March 31), the consolidated financials of India Infoline reported a profit after tax (PAT) of Rs.1,448 million on a total income of Rs.9,624 million, against a PAT of Rs.1,599 million on a total income of Rs.10,236 million in the previous year. For the six months ended September 30, 2009, India Infoline reported a PAT of Rs.1,097 million on total revenues of Rs.5,700 million, against a PAT of Rs.898 million on total revenues of Rs.5,457 million for the corresponding period of the previous year.
