Karvy, the Indian financial services group, has launched a new wealth management business, joining a number of both domestic and foreign firms who are moving to tap the country’s growing private wealth, the Business Standard reports.

According to the report, the launch of Karvy Private Wealth, which is to focus on advising and managing the wealth of India’s high and ultra high net worth individuals, follows Karvy’s acquisition of Park Financial Advisors.

In addition to Karvy gaining former Park clients, the four founders of the boutique advisory firm have also joined Karvy Private Wealth, the business’ chief executive Hrishikesh Parandekar is quoted as having said. Going forward, Karvy Private Wealth intends to leverage its relationships with affluent clients to grow the business and to capitalise on geographical reach of the Karvy group’s retail arm.

Karvy Private Wealth is still a “nascent business” Mr Parandekar is reported to have said, adding that there are only 20 to 25 major firms - comprising foreign and large private sector banks - who have been major players in this area.

Although the Indian stock market fell last year, its markets have shown early signs of recovery and many commentators say that the country will be a key engine driving global economic recovery. India’s rise as an economic power continues to swell the ranks of the country’s wealthy, leading many firms to view India as a key growth market in wealth management.

Earlier this month, Switzerland’s Bank Sarasin launched financial advisory and consultancy services in India, and will open offices in Mumbai and Delhi on 1 July; meanwhile, Credit Suisse, UBS, Barclays Wealth and JP Morgan are among a growing list of Western firms which either already have or are set to launch wealth management operations in the country.