R Trade ties up with UTI Bank
R Trade, the financial services brand promoted by the Anil Ambani group, has tied up with UTI Bank which will serve as its main banker.
Transactions done through R Trade Securities and R Trade Commodities, respectively the stock and commodity broking outfits set up by the group, will be supported by the bank.
Besides UTI Bank, arrangements have also been made with three others - ICICI Bank, HDFC Bank and IDBI Bank. These, feel sources close to the development, should enable R Trade to cater to a wide range of clients.
"While UTI Bank and the others will be our preferred bankers, the former is expected to play a key role in the expansion of our operations," a senior source mentioned while referring to R Trade's plans to expand geographically across customer segments.
Online services, incidentally, will be the group's special focus. Besides the two broking firms, the group has also set up a separate firm named R Trade Financial Services; the latter has recently received RBI's consent for commencing business.
Given R Trade's plans, a strong banking tie-up will be extremely significant, it is pointed out. Online brokers such as ICICIdirect and Kotakstreet (now kotaksecurities.com) are said to have an advantage in the shape of their close connections with the parent banks. This would not quite be the case with R Trade, it is felt.
R Trade, sources indicated, proposed to partly outsource news content from Dow Jones, the global information major. Clients will be able to access DJ news - which is otherwise a subscription-based service - that will be made available on the site.