- The overall broking revenues grew by 6% month on month (MoM) in September 2019
- The average daily brokerage grew by 12%
- The broking market share fell in both cash and derivatives markets compared with August 2019
- New account additions down 11% MoM
- The mutual fund assets under management (AUM) up 5% over the previous month
- Revenues from the Loan Against Securities (LAS) business rose by 3% MoM
- Revenues from the Portfolio Management Service (PMS) business increased by 3% over the previous month
The stock market had reported a positive performance for September this year with the key indices recording a growth of 5% each in the wake of a week-long rally towards the end of the month triggered by the announcement of corporate tax rate cuts. Unfortunately, in the broking business, we could not match pace with the market and lost market share. Of course, the weak performance including the double-digit drop in the new account additions can be partly attributed to a less number of working days in the month due to holidays on account of the Ganesh festival. The mutual fund distribution business, on the other hand, benefitted from the market rally and saw a growth in AUM. The revenues from the LAS and PMS businesses also grew on the back of a surge in credit demand during the festive season and the positive market activity respectively.
October is nearly over and the month’s performance will, no doubt, bear the impact of the good number of holidays we’ve had this month. We have another two months left to address the overall revenue shortfall, which now stands at nearly 20% based on the current targets. Factors like festivals and Block Leave would continue to pose a challenge but we need to focus on our targets and push our limits to see what we are capable of. It’s time to move to an even higher gear.
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