RBL Bank is assessing a move into broking and asset management while developing custodian and settlement services, as it seeks to expand fee income and strengthen its capital-markets business.
RBL Bank is weighing a move into broking and asset management as it looks to widen its capital-markets presence and build more fee income, according to remarks from managing director and chief executive R. Subramaniakumar reported by PTI and carried by NDTV Profit. He said the lender has not taken a final decision and is still assessing which activities could be run in-house, which might sit at the group level and which would need separate units.
Subramaniakumar said the bank is also considering custodian and settlement services, with work already under way and a target of getting those offerings live within three quarters, according to NDTV Profit and Business Standard. The bank has also begun merger and acquisition financing on a small scale, while wealth management remains another priority as RBL looks to deepen its reach across regions and asset classes.
The expansion would build on existing capital-markets links. RBL already offers a 3-in-1 account tied to IIFL Capital’s demat and trading services, showing that it has some experience working with outside partners in securities-related business, according to its own website. The bank also has cash management services for large corporates, capital-markets participants and other clients, giving it a further base from which to expand transaction-linked services.
Subramaniakumar said proposed changes by the insurance regulator could affect revenue if implemented unchanged, but argued that higher volumes should help offset any pressure. He also pointed to improving profitability, saying return on assets has risen from 0.4% to 0.92%, while net interest income is growing at a healthy pace. The lender opened 22 branches on Monday, taking its network to 650, and plans to add another 30 before the end of the fiscal year.
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