Indian stockbrokers clocked stellar growth while the economy went into recession
A record 1.42 crore new demat accounts were opened in the country in 2020. Representational image. | Danish Siddiqui/Reuters
If stock brokering businesses were the benchmark for India’s economic success, no one would believe that the country is going through its worse financial crisis in decades.
Over the last year, as India struggled with Covid-19 outbreaks, the country’s economy went into a recession, the unemployment rate spiked sharply and thousands of households were pushed into poverty. Many small businesses are currently hanging by a thread.
Away from this gloom and doom, stockbrokers in India have raked in crores of rupees during the pandemic.
May 25, 2021
If stock brokering businesses were the benchmark for India’s economic success, no one would believe that the country is going through its worse financial crisis in decades.
Over the last year, as India struggled with Covid-19 outbreaks, the country’s economy went into a recession, the unemployment rate spiked sharply, and thousands of households were pushed into poverty. Many small businesses are currently hanging by a thread.
Away from this gloom and doom, stockbrokers in India have raked in millions during the pandemic.
In the financial year that ended on March 31, 2021, the stock brokerage industry in India clocked an income of Rs27,500-28,500 crore ($3.6 billion), which is around 30-35% higher year-on-year, according to rating agency ICRA.
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Getty Images NSDL crossed the 2 crore mark in demat accounts, riding on the surge in retail investor participation since last March.
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NEW DELHI: No matter whether you made money in the breakneck stocks rally in last one year or not, brokers definitely got richer at a much faster clip, thanks to a surge in trading volume. But that period of stupendous growth might be getting over.
CDSL, which provides depository services, added over 1 crore investors in the last one year. It now has 3 crore demat accounts. Its rival NSDL crossed the 2 crore mark in demat accounts, riding on the surge in retail investor participation since last March.
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Last Updated: Feb 26, 2021, 04:33 PM IST
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Panellists at the ET India Inc Boardroom emphasised the need for banks to invest in digital technology to bring down costs, and drive better delivery.
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Banks, NBFCs, asset management companies and insurance providers have, for long, dominated the narrative when it comes to the financial sector in India. However, as the BSE Sensitive Index, or Sensex, touched the magical 50000-point mark, there was one sector that suddenly found itself in the limelight. The Indian Broking Industry.
Brokerages to clock 35% rise in broking income this fiscal; moderate growth in FY22: ICRA
The ICRA sample pool of 12 brokerage companies registered an annualised growth of 34 per cent in broking income and 21 per cent in total revenues in H1 FY2021
Aprajita Sharma February 23, 2021 | Updated 21:16 IST
The brokerage industry is expected to clock a record broking income of Rs 27,500-28,500 crore in FY21, a jump of 30-35 per cent compared to Rs 21,000 crore in FY20. The record growth comes on the back of a spurt in retail participation post COVID-19 crash in March 2020 and a resultant pick-up in transaction volumes.
The ICRA sample pool of 12 brokerage companies registered an annualised growth of 34 per cent in broking income and 21 per cent in total revenues in H1 FY2021.