SBI rejects rumours of JV with SG

State Bank of India (India) today rejectd rumours of its proposed joint venture with French financial services major Societe Generale. The bank said it has not received any official communication from the regulators.

SBI had entered into an agreement with Societe Generale Securities Services (SGSS), a division of Societe Generale Group in June this year to provide a range of security services like reporting, corporate actions, dividends collection and distribution, tax reclaim services amongst others.Following the signing of the pact, SBI is presently waiting for the Reserve Bank of India approval while Societe Generale's proposal is pending with the Foreign Investment promotion Board (FIPB).

Foreign retail brokerage majors eye stakes in Indian cos

Attracted by the tremendous potential and phenomenal growth achieved by Indian retail brokerage firms in recent times, a clutch of foreign majors are mulling an entry into the market.

Foreign majors such as the Citigroup, Societe Generale (SocGen), BNP Paribas, Standard & Chartered Bank and Australia-based Macquarie Bank are understood to be contemplating picking up equity stakes in Indian retail brokerages as an easy route to enter the market.

A buoyant stockmarket despite the odd hiccup combined with an increasing appetite for equities among investors, tech convenience of online trading and falling brokerage fees have proved to be the major growth drivers of the industry.

The potential of the Indian market was higlighted recently when nearly 19 suitors stepped forward to claim a stake in leading retail brokerage Sharekhan, amongst the top three such firms in the country.

Read more in The Economic Times article.

French MF to enter India

French mutual fund major Credit Agricole Asset Management (CAAM) is eyeing a pie of the Indian mutual fund industry. The fund house that manages assets worth 534.8 billion euro globally would be the fourth French mutual fund giant to enter India.

While AXA has collaborated with Bharti, BNP Paribas has a tie-up with Sundaram and Société Générale Asset Management with SBI.

Like the early French entrants, CAAM, too, is looking for a joint venture partner. In the other eight countries that CAAM operates in, the AMC has either entered singly or through a joint venture.

“The due diligence process has begun,” Thierry Mequillet, CAAM’s chief executive Asia, said. However, he said the percentage of stake the French company would have in the mutual fund JV would be decided during negotiations.

Global NBFCs want to play it big in India

Top global financial firms which have acquired a foothold in the Indian non-banking finance companies’ (NBFCs) segment are now pursuing an aggressive strategy to expand their reach within the country.

Fullerton India, a subsidiary of Temasek, the Singapore government’s investment arm, is emerging as one of the most aggressive players in the financial sector. The firm is now drawing up plans to open 400 branches over the next 12 months to scale up its operations from the current base of 100 branches.

Other recent entrants in the NBFC segment include biggies such as AIG Capital while other global players — BNP Paribas and Societe Generale have also entered the business by acquiring stakes in Indian firms.

The aggressive moves by these firms come at a time when entrenched firms such as Citi Financial and StanChart’s Prime Financial have been pursuing a scorching growth strategy. Besides, the new players have to contend with local firms — Future Group and Indiabulls which have also forayed into this business during the past few years.

Read more in The Economic Times article.