Strategy
StanChart's Private Bank Expects Strong India AuM Growth
The Standard Chartered Private Bank expects to oversee more than $2 billion in India by December, up by around $250 million from June and driven by the steady rise in the numbers of high net worth individuals, according to the Economic Times (of India).
The assets are likely to come from five locations, covering close to 700 households in India, the publication said.
The bank, which has been maintaining a compound annual growth rate of 35 per cent over the last year, expects a similar growth this year, Soumya Rajan, managing director, head, private bank, India, was quoted saying on the sidelines of an event to announce the activities of the philanthropic wing of the bank.
India, along with countries such as China, is seen as a vibrant wealth management market as a result of the country's economic growth, which has fuelled the rise of an affluent middle class. As a region, Asia will overtake established Western wealth management markets in terms of ultra high net worth population growth, highlighting just why major banks such as HSBC are shifting to the East, according to a new report from Ledbury Research that adds to other reports suggesting this trend.
The Standard Chartered Private Bank has assets under management of $42 billion globally, out of which about two-thirds come from Asia, Shayne Nelson, chief executive and global head of the private bank, was quoted as having said.
However, in terms of overall business, Asian countries like Singapore and Hong Kong still contribute a much larger share of business for The Standard Chartered Private Bank.
"India is the second fastest growing market for us, after Singapore. We have been focusing on geographies like Asia, Africa and the Middle East," said Nelson.
In India, the bank is planning to double the number of relationship managers from 50 at present, by 2013, covering nearly 15 cities. It is looking to expand to cities like Ludhiana, Chandigarh and Ahmedabad. According to the latest Forbes India rich list, the combined net worth of India’s 100 richest people is $300 billion, up from $276 billion last year.