Hinduja Bank scents opportunity in investment banking

Hinduja Bank, which recently upped its stake to 51% in an Indian stock-broking firm, plans to strongly focus on the capital markets business, investment banking and corporate advisory in India, a senior bank official said.
       
The Switzerland-based bank recently acquired a 11% stake in addition to its existing 40% in Chennai-based stock-broking and financial services firm, Paterson Securities.
       
"We were already active in the Indian capital markets business but acquiring a 51% stake gives us a stronger access to the Indian market. We scent a growth opportunity in investment banking and corporate advisory here," Hinduja Bank's head, Global Investment Solutions, Andreas Luethi, told PTI.
       
The bank plans to leverage Paterson's strong presence and high reputation in south India to grow its business. It also now plans to expand its footprint to other parts of India, including Mumbai, and plans to increase its headcount.
       
Paterson Securities has 2,500 clients and serves a diversified group of customers comprising financial institutions, large corporate groups, high networth individuals and retail clients.
  
Hinduja Bank had acquired a 40% stake in Paterson Securities in December 2008 and a further 11% a few weeks ago.
       
"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.
       
Paterson Securities has been on expansion mode over the last one-year, having added 15 branches to take its total network to 30.
       
Luethi said Paterson Securities will remain a separate entity and become the central partner for Hinduja Bank in the country for stock-brokng, corporate finance advisory, research and asset management-related services.
       
Asked if more acquisitions were being considered, Luethi said, "We are open to acquisitions if a good opportunity presents itself."
       
Hinduja Bank, however, has no immediate plan to open branches in India, Luethi said.