The largest French bank, BNP Paribas SA, is planning to up stake by more than 50% in retail brokerage Geojit Financial Services by next year, Bloomberg. BNP Paribas also expects Geojit, in which it holds a 34% stake, to make money in 2009, added the report quoting Olivier Le Grand, head of BNP Paribas Personal Investors.
Geojit recently reported a decline in its fourth quarter results, for which its revenues fell from Rs 64.08 crore to Rs 48.8 crore. For the fiscal year, revenues fell by 19.69% from Rs 238.31 crore to Rs 191.38 crore.
Paribas has a network of 500 branches.
BNP Paribas bought a 27 percent stake in Geojit in 2007 for $46 million and recently concluded its open offer. BNP has a mutual fund venture with Sundaram Mutual called Sundaram BNP Paribas Mutual. BNP has also recently launched a Middle East and North Africa private
equity fund, which it plans to close by June.