April 24 (Bloomberg) -- BNP Paribas SA, France's largest bank, said its retail brokerage unit in India will make money in 2009 and the bank may consider increasing its stake to more than 50 percent as early as next year.
"We'll be profitable in 2009," said Olivier Le Grand, head of BNP Paribas Personal Investors, referring to Indian broker Geojit BNP Paribas. Geojit is "prudent" on the outlook for this year and will open branches at a slower pace than the 50 annual starts since 2007, Le Grand said in a phone interview.
Indian stocks, laggards among the world's biggest emerging- market in the first quarter, rebounded in April as investors snapped up the cheapest shares in 13 years. The Bombay Stock Exchange Sensitive Index fell to its lowest level in more than three years on March 9.
Paris-based BNP Paribas, which owns about 34 percent of Geojit, aims to increase its stake as early as 2010 and may consider becoming the majority shareholder, Le Grand said. The French bank spent 35 million euros ($46 million) in 2007 to buy a 27 percent stake in Geojit Financial Services Ltd. to gain clients in the world's second-most populous country.
Geojit, based in Kochi, southern India, changed its name and rebranded its 500 branches as Geojit BNP Paribas, the company said yesterday.
The firm broke even in the fiscal year through March as it invested to open branches and started a venture with BNP Paribas' investment-banking arm to provide brokerage services to institutional investors in India, Le Grand said.
To contact the reporter on this story: Fabio Benedetti-Valentini in Paris at fabiobv@bloomberg.net .
"We'll be profitable in 2009," said Olivier Le Grand, head of BNP Paribas Personal Investors, referring to Indian broker Geojit BNP Paribas. Geojit is "prudent" on the outlook for this year and will open branches at a slower pace than the 50 annual starts since 2007, Le Grand said in a phone interview.
Indian stocks, laggards among the world's biggest emerging- market in the first quarter, rebounded in April as investors snapped up the cheapest shares in 13 years. The Bombay Stock Exchange Sensitive Index fell to its lowest level in more than three years on March 9.
Paris-based BNP Paribas, which owns about 34 percent of Geojit, aims to increase its stake as early as 2010 and may consider becoming the majority shareholder, Le Grand said. The French bank spent 35 million euros ($46 million) in 2007 to buy a 27 percent stake in Geojit Financial Services Ltd. to gain clients in the world's second-most populous country.
Geojit, based in Kochi, southern India, changed its name and rebranded its 500 branches as Geojit BNP Paribas, the company said yesterday.
The firm broke even in the fiscal year through March as it invested to open branches and started a venture with BNP Paribas' investment-banking arm to provide brokerage services to institutional investors in India, Le Grand said.
To contact the reporter on this story: Fabio Benedetti-Valentini in Paris at fabiobv@bloomberg.net .
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