One of India’s biggest private banks is taking control of a leading brokerage firm. On Wednesday Axis Bank announced a merger with Enam Securities. The all-stock deal is worth close to Rs 2,100 crore.
Enam will get 3.3% Axis Bank, while becoming its subsidiary. Meanwhile, Enam’s Manish Chokhani will become Ceo of the subsidiary. And the brokerage’s co-founder, Vallabh Bhansali, will get a seat on the board of Axis Bank. The deal still needs clearance from market regulator Sebi and the RBI.
Indian hunger for gold has buoyed the market for the yellow metal. A new report from the World Gold Council says a surge from India and China has led to a 12% rise in demand in 2010’s third quarter. And while Chinese consumers have just bought gold Indians have been buying jewelry. Indeed, the council’s says jewelry demand this year could be even greater than in 2009.