HDFC Securities is creating its own discount broking architecture to compete with new-age firms like Zerodha, Angel One which are eating into market shares of entrenched players in the business. HDFC Bank aims to win the market share over next two-three years taking into consideration that the largest private sector lender does not have any plans to sell stakes in the brokerage.
“Value Plan for Lowest Brokerage”
The company allows its customers to trade and invest in shares, bonds, futures, options, buybacks, mutual funds, IPOs, currency derivatives, commodities, stock portfolios, etc. HDFC Securities is a SEBI registered broker and a member of BSE, NSE, MCX, CDSL and NSDL.
It can be noted that over the last few years, discount brokerages which help an investor transact by paying a fraction of commissions and fees have become popular with investors, forcing many of the entrenched players to offer similar offerings.
“I’m happy to say that our own HDFC Securities also has a plan and you will see that countering the threats from discount brokerages with its own neo architecture or discount kind of an architecture as well, ” Jagdishan told the bank’s shareholders at its annual general meeting on Saturday.
He added that HDFC Securities will be responsible and exuded confidence that it will gain market share in the next 2-3 years. The company, which registered a 94.9 per cent growth in its June quarter net profit to Rs 260.6 crore, is doing extremely well, Jagdishan said.
As per filings, HDFC Securities’ total income grew by 67.3 per cent to Rs 457.8 crore in the June quarter as against Rs 273.7 crore in the year-ago period. It had 215 branches across 147 cities / towns in the country. He said the bank has taken the regulatory actions arising out of challenges faced on technology in the right spirit and the management has displayed grace and humility.