Financial companies in expansion mode

MUMBAI: Amid the continuing job losses across several sectors in India, at least three financial services companies are going against the tide of issuing pink slips to employees.

ADA Group-promoted Reliance Money, HDFC Bank's financial services arm HDFC Securities, and Religare Securities, promoted by the family that till recently was the majority owner in Ranbaxy Laboratories, are all in the expansion mode, recruiting people. And all the three firms have strong financial backing to grow at a time when, even by RBI's own admission, the services sector is slowing.

Reliance Money has recruited nearly 400 people in the last three months and about 700 people in the last six months. The ADAG company has acquired companies to expand its product portfolio and has also ventured into new territories, outside of India.




"For one, we never concentrated in the funding business in the broking space. And also we were very focussed not to concentrate only in the Mumbai region,'' said Sudip Bandyopadhyay, CEO, Reliance Money. "Around six months ago about 20% of our turnover was from the non-metro areas which has now grown to about 30%,'' Bandyopadhyay added.

Apart from its non-concentrated client and geographical profile, R-Money also expanded its commodities broking and distributions of mutual fund, insurance and gold coin businesses. "Recently we added people in our wealth management and equity businesses,'' R-Money CEO said. The company is also recruiting people for its foreign operations.

On its part, HDFC Securities has added about 22 branches in the last seven months to 37 now. And it is targeting to go up to 45 branches by the end of the current financial year.

With a strict control over costs, despite the strong financial backing, it is 1,000 people strong, up from about 600 when the financial year started. It would recruit another 200 before FY09 ends, said Aseem Dhru, MD, HDFC Sec. "We are expanding our institutional business also. Next quarter we would add some more people in that segment,'' said Dhru, who believes that all good broking houses are made during the bear phase.

For these firms which are still in the recruitment mode, the downturn has thrown up the prospects of a better choice in people selection. During the fag end of the bull run, with almost every firm in the expansion mode, getting good people at a reasonable cost was difficult. But that has now changed dramatically. "It's our intent to grow. And as an employer we have more choices today,'' said Amitabh Chakraborty, president-equities, Religare Securities.

In the institutional segment, Religare is adding analysts and senior analysts, and intends to expand its research coverage from about 165 companies now to about 300 companies. Other than the broking business, the Religare group is also expanding its mutual fund, consumer finance and other businesses.