Hdfc Bank To Offer Pvt Banking To The Affluent Masses

HDFC Bank is taking its wealth management services (private banking) to 'affluent masses'. Traditionally, this segment has been restricted to only high net worth individuals who keep a minimum bank balance of at least Rs 50 lakh and the banks extend the service free.

HDFC Bank has now rewritten the games of the play by bringing down the required amount to a low level and charging the clients on the advisory services it is providing.

HDFC Bank is offering the service to the "affluent mass" customers at a fee. The bank has segregated its services into non-interactive services and interactive services.

 

The non-interactive services are offered through net and SMS, and do not require any minimum portfolio to be tracked. The fees for both net and SMS services have been pegged at Rs 10,000 annually.

The service has four slabs starting with Rs 35,000 payable annually for tracking a portfolio of Rs 35 lakh. The list of services offered to the customers includes a dedicated advisor and a comprehensive daily analysis of the markets.

HDFC Bank's managing director Aditya Puri said: "The bank is offering different type of services depending on the needs of the customer. The bank will offer the whole range of products and services. As the customer increases the relationship, he will also get a better pricing on other products which the bank offers. Our main objective is to cross-sell the products." The bank had launched its private banking services three years back.

"We have a customer base of more than 1,500 and are one of the largest in the country," says Abhay Aima, country head equities and private banking, HDFC Bank. The bank had launched the fee-based service around a year ago for its high net worth customers. This service is now being offered to the "mass affluent" segment as well. "The bank will meet all the needs of the customer. It is a high-cost service. If the equity market is affected, the advisory services will be more needed by the customers," said Aima. The private banking portfolio is equally profitable as the top segment of the retail market, said Puri.

He, however, refused to divulge any figures. Private banking services in India is offered mostly by the foreign banks in which HSBC is the leader. Among private sector banks ICICI Bank is likely to start its private banking services in the next couple of weeks.