ManagementIL&FS Investsmart renamed as HSBC InvestDirect
Retail brokerage firm IL&FS Investsmart was On Thursday renamed as HSBC InvestDirect to align it with the HSBC brand following its takeover by the foreign lender last year.
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HSBC had acquired 93.86 per cent stake in IL&FS Investsmart in September 2008, and has recently initiated the process to delist the company from stock exchanges.
HSBC InvestDirect has 1,603 employees and over 200 outlets through which it provides a range of investment products to retail and institutional clients.
“The HSBC InvestDirect brand is our global retail broking brand and is present in five countries. The acquisition of HSBC InvestDirect has offered our banking customers an option to avail themselves of retail broking services. It has also provided us with an enhanced reach to offer our wealth management products such as mutual funds and insurance though it’s over 200 outlets,” said Naina Lal Kidwai, group general manager and country head, HSBC India.
HSBC InvestDirect also has a non-banking finance arm, which lends to customers in the capital market space. The NBFC incurred a loss of Rs 20 crore in the June 2009 quarter, compared to a profit of Rs 1 crore in the corresponding quarter last year.
When HSBC acquired IL&FS Investsmart, the size of the NBFC’s loan-book was Rs 2,000 crore, which was subsequently reduced to about Rs 500 crore at present. According to Manasije Mishra, managing director and chief executive officer, HSBC InvestDirect, the shrinkage in assets was on account of the fall in initial public offer (IPO) financing, margin trade funding and promoter funding in the last financial year in line with reduced capital market activity.