embargo against further growth in India, an application by UBS for
its first banking licence to help build its wealth management
services has been delayed by the Reserve Bank of India, awaiting
the outcome of a controversial enquiry.
This follows the Swiss group’s decision last year to abandon a plan
to buy the mutual fund operations of Standard Chartered for $129.2
million because it failed to get regulatory approval from the
central bank.
Go deeper with GlobalData
The Reserve Bank says that while there’s approval in principal for
a licence for UBS, it has been put on hold pending an
investigation. This is understood to involve international payments
involving a wealthy Indian national, with the country’s Finance
Ministry investigating an alleged $8 billion money laundering
racket, according to Mumbai reports.
In response, a UBS spokesperson stressed that the bank co-operates
with regulators in any country in which it operates.
UBS already has a broking and investment banking operation in
India, but the fresh regulatory go-slow could still leave it
trailing its competitors which are expanding actively into India,
particularly in the wealth sector.
Rival Credit Suisse is now launching its own wealth management
business in India, as it has obtained regulatory approval. The
Securities and Exchange Board of India has given it a licence to
start portfolio management schemes. Credit Suisse considers India a
core growth market, projecting that households in the country with
bankable assets over $1 million will rise to 300,000 in 2012 from
120,000 last year. It plans to increase its Indian-based staff to
about 130 by March compared with under 100 at the year-end.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataAnother global private bank, Royal Bank of Canada (RBC), has
entered the Indian market by opening its first representative
office in Mumbai. It plans to offer three main services in India –
wealth management to high net worth clients, capital markets
products and services, and correspondent banking and trade finance
services to Indian financial institutions. RBC has appointed
Akhauri Sinha as India head and Dipendarra J Singh as head of its
wealth management business.
The UK’s Barclays will launch its wealth management business in
India in second-half 2008, with the aim of becoming one of the top
three local wealth managers in the next three to four years. Satya
Narayan Bansal, chief executive, India for Barclays Wealth, said
that “there is huge untapped business in India,” adding that the
country is the fastest-growing wealth management market. Barclays
Wealth will cater to high net worth individuals ($1 million to $30
million) and ultra HNWIs ($30 million and above).
According to US consultancy Celent, private client assets under
management available to wealth managers in India will quadruple to
some $1 trillion by 2012. Currently, total assets in ‘organised’
Indian wealth management are estimated at $250 billion, and are
growing at 32 percent annually, it estimated.
Standard Chartered, meanwhile, indicated that it has received a
number of bids for its 75 percent stake in its Indian mutual fund
business now that it has been re-offered on the market.
