The new generation private sector bank has also joined hands with NSE.IT-the infotech outfit of National Stock Exchange (NSE) for extending its web interface to the software vendors of the firm. HDFC Bank is one of the clearing banks of NSE. The bank is expected to extend its web services to other financial portals.

"We will function as the payment bank for facilitating fund transfer from our customers' account to the broker accounts. Demat account-holders with the bank can receive securities from the brokers' account," HDFC Bank country head (operations) H Srikrishnan told The Financial Express. The decision to extend the `e-net' product for facilitating equity transactions comes close on the heels of the HDFC group deciding to set up an online brokerage firm-HDFC Securities for allowing trading in stocks through the web. "The B2B product was earlier available only to our corporate and retail customers," Srikrishnan said.

Online brokerages promoted by financial institutions have an edge over their conventional counterparts as they are able to provide their customers with bank, demat and brokerage accounts-all under a single roof. This allows speedy processing of transactions and smooth delivery of securities.Conventional brokerages, on the other hand, have to rely on banks for routing their transactions. "A few brokerages are already offering e-broking services to their customers by routing transactions through their portals. We will enable third party transfer of funds and securities between our customers and these brokerages," Srikrishnan said.