India’s Largest bank, the State Bank of India has tied-up with MotiLal Oswal Securities to provide online trading and investment solutions to SBI customers throughout India. SBI is the first state owned bank to venture into online trading.
Motilal Oswal already operates on a PAN India basis for retail trading and investment advise to small and high networth individual investors. Earlier this year, Motilal Oswal bought Cochin based Peninsular Capital Markets for Rs50 crores.
Immediately after this announcement, IL&FS announced that they have roped in another PSU bank for Online investment solutions – Oriental Bank of Commerce. Now OBC customers will have access to IL&FS online trading platform. IL&FS will be controlled by E-Trade the pioneers of Internet stock trading in the US.
With the entry of Reliance Money, existing players have woken up to survive competition by tieing up with PSU banks which have a large pool of customers.