The wealth management business has become a focus area for many new generation private sector banks as they look at new business avenues to shore up fee-based income. The trend is a result of the fall in treasury income. | |
| UTI Bank, Centurion Bank and IndusInd Bank are among the private sector banks which plan to enter this segment on a larger scale. ICICI Bank and HDFC Bank are already established players in the wealth management space. |
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| ICICI Bank is the largest player in this segment with assets worth above Rs 20,000 crore under its management. |
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| "ICICI Bank offers a whole range of services to its customers such as investment advise, online trading facility, real estate advise and other services," said Arpit Agarwal, head, private banking, ICICI Bank. |
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| "The income from the core banking business is under pressure and banks are looking at new business segments like wealth management to shore up income," said Abhay Aima, country head - equities and private banking group, HDFC Bank. Currently, HDFC Bank has assets under management in excess of Rs 6,000 crore. |
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| "We also plan to provide art advisory services in due course to our high networth clients," he added. |
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| UTI Bank will roll out its wealth management business in July. Currently it offers priority banking services to its customers who maintain a minimum balance of around Rs 5 lakh in fixed deposits and Rs 1 lakh in savings account. |
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| The bank's high networth clientele has a deposit of over Rs 2,500 crore with the bank, which manages assets in excess of Rs 8,000 crore. |
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| UTI Bank provides third party products like mutual funds and insurance to its customers under the priority banking services, said the bank's senior vice-president, retail banking, Hemant Kaul. |
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| "We plan to provide portfolio management services, advice on real estate investments and art investments," said Kaul. |
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| Similarly, IndusInd Bank offers wealth management services to its high-end customers through the sale of third-party products. However, it is exploring tie-ups with overseas players to increase the gamut of services it can offer to high networth individuals (HNIs). |
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| IndusInd Bank has a non-resident Indian (NRI) clientele base of 10,000, most of whom are HNIs, said a bank official. |
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| "Apart from remittance business into the country, NRIs are looking for portfolio management services including stock broking, arbitrage opportunities between foreign currencies, which we as a bank cannot offer today," the official added. |
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| Once IndusInd Bank sets up the capital market subsidiary, it will be able to grow the NRI business. |
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| Many HNIs are also attracted to commodity trading. HDFC Bank proposes to set up a specialised desk to provide advisory services to these clients, said PV Ananthkrishanan vice-president & head - capital market & correspondent banking services at the bank. |
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