Business Daily from THE HINDU group of publications
Thursday, Nov 23, 2006
Money & Banking - Public Sector Banks
Markets - New Products & Services
A PNB customer can get a 3-in-1 account
Existing savings and demat accounts can be linked
New Delhi , Nov. 22
Punjab National Bank (PNB) has launched online share trading services for its customers. It has tied-up with IDBI Capital Market Services to enable the bank's customers to access www.IDBIpaisabuilder.in, a Web-based portal, for investing in equity, mutual funds and initial public offerings.
Although PNB offered bank and demat accounts to its customers so far, it could not directly provide investment products (like online share trading) to them due to regulatory reasons. This alliance with IDBI Capital Market Services would help the bank to offer online trading in shares and, thereby, enlarge the number of demat accounts.
With this tie-up, a PNB customer can get an integrated 3-in-1 online account that includes bank, investment and demat accounts. One can even link existing savings and demat accounts.
PNB is now serving about 3.8 crore customers through its 4,500 branches. At present, the bank has about 35,000 demat accounts spread across 165 branches in 55 cities. It expects to add another 25,000 demat accounts by March 2007.
"Having given deposit accounts and demat services to our customers, there was a gap. We had not given a platform for them to trade. This alliance will help fill this gap," Mr K. Raghuraman, Executive Director, PNB, told presspersons after signing a MoU with IDBI Capital Market Services here on Wednesday.
Initially, the 3-in-1 accounts would be available for PNB customers in Delhi and Mumbai. From January 1, 2007, this facility would be gradually extended to 55 cities.
Mr Raghuraman also said that PNB would within the next one-month become a depository participant with Central Depository Services (India) Ltd.
IDBI Capital Market Services Chief Executive Officer (CEO), Mr S. Muhnot, said that this alliance augurs well for the company, as it would benefit from the wide reach and nationwide presence of PNB.
"In the coming days, we will look into more such tie-ups with other public sector banks so that we could tap their large customer network," he told Business Line.
Meanwhile, sources said that IDBI Bank might within the next fortnight roll out the www.IDBIpaisabuilder.in product to its customers.
Stories in this Section
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | The Hindu ePaper | Business Line | Business Line ePaper | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |
Copyright © 2006, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line