Hinduja Bank bullish on investment banking, corp advisory biz

Hinduja Bank bullish on investment banking, corp advisory biz

Mumbai: Switzerland-based Hinduja Bank, which recently upped its stake to 51% in a domestic stock-broking firm, plans to strongly focus on the domestic capital markets business, investment banking and corporate advisory, a senior bank official said.

The bank recently acquired an 11% stake in addition to its existing 40% in the Chennai-based stock-broking and financial services firm Paterson Securities.

“We were already active in the capital markets business here but acquiring a 51% stake gives us a stronger access to this market. We scent a growth opportunity in investment banking and corporate advisory here," said Hinduja Bank head-Global Investment Solutions Andreas Luethi.

The bank plans to leverage Paterson Securities’s strong presence and high reputation in the south to grow its business. It also plans to expand its footprint to other regions, including Mumbai, and plans to increase its head count.

Paterson Securities has 2,500 clients and serves a diversified group of customers comprising financial institutions, large corporates, high networth individuals and retail clients.

Hinduja Bank had acquired 40% stake in Paterson last December and bought an additional 11% a few weeks back.

“We want to be known as an Indian specialist. We are now looking to spread our wings from the south to Mumbai and other parts of the country. We will be adding staff soon," Luethi said.

The Chennai based broking firm has been on expansion mode over the past one year, having added 15 branches, taking its total network to 30.

Luethi said Paterson will remain a separate entity and become the central partner for Hinduja Bank in the country for stock-broking, corporate finance advisory, research and asset management-related services.

Asked if more acquisitions are being considered, he said, “We are open to acquisitions if a good opportunity presents itself." He, however, added that the bank has no immediate plan to open branches here.