Challenges and Opportunities for the Wealth Sector in India

Synopsis

This report is the result of WealthInsight’s extensive research covering the HNWI population and Wealth Management industry in India.

Summary

This report is a thorough analysis of India’s Wealth Management and Private Banking sector, and the opportunities and challenges that it faces. In addition to providing a comprehensive and robust background of the Indian economy, including, uniquely, detailed analysis of economic and political risks to HNWI wealth creation, the report provides robust projections of the volume and wealth of India’s HNWI.

Scope

The report features:

• Independent market sizing of India’s HNWI
• Details of the development, challenges and opportunities of the Wealth Management and Private Banking sector in India
• Current insights into the drivers of HNWI wealth
• Family office information

Reasons To Buy

• The WealthInsight Intelligence Center Database is an unparalleled resource and the leading resource of its kind. Compiled and curated by a team of expert research specialists, the Database comprises up to one hundred data-points on over 100,000 HNWI, private banks, wealth managers and family offices around the world. With the Database as the foundation for our research and analysis, we are able obtain an unsurpassed level of granularity, insight and authority on the HNWI and wealth management universe in each of the countries and regions we cover.
• Comprehensive forecasts to 2015.

Key Highlights

• India currently has the fourth-highest number of HNWIs in the Asia-Pacific region after Japan, China and Australia. In 2011, there are 251,000 HNWIs in India who, together, hold a total of US$1,083 billion.
• Going forward, the number of Indian HNWIs is expected to grow by 85% to reach close to 465,000 individuals in 2015. HNWI wealth is expected to grow by 97% to US$2,134 billion in 2015.
• Given ongoing political trends in India regarding the financial sector and, specifically, the wealth management sector, increased regulation of the industry is highly probable. Our research suggests that such regulation will be a net positive for the industry, and will clarify and streamline taxation and the regulatory structure.

Contents

1 INTRODUCTION

1.1 What is this Report About?

2 WEALTH SECTOR FUNDAMENTALS

2.1 Economic Background to the Wealth Sector
2.2 Political Background to the Wealth Sector
2.3 Benchmarking Indian Wealth in Context

3 COMPETITIVE LANDSCAPE OF THE WEALTH SECTOR

3.1 Competitive Structure
3.2 Wealth Managers and Private Banks
  3.2.1 Wealth managers
  3.2.2 Private banks
  3.2.3 Foreign banks and MNCs
  3.2.4 Joint ventures
  3.2.5 Domestic providers
3.3 Leading Companies in the Wealth Management Industry
3.4 Family Offices
  3.4.1 Multi-family offices
  3.4.2 Single-family offices
3.5 Trusts
3.6 Challenges and Opportunities for the Wealth Sector in India
  3.6.1 Regulatory
  3.6.2 Tax
  3.6.3 Human resources
  3.6.4 Move to self-management
  3.6.5 Underdeveloped product offerings
  3.6.6 Demands of intergenerational wealth transfer and younger clientele
  3.6.7 Philanthropy

4 APPENDIX

4.1 Banking Regulations, Taxes and Laws
  4.1.1 Regulations on equity capital
  4.1.2 Limitation on amount of loans
  4.1.3 High currency reserve ratio (CRR) and statutory liquidity ratio (SLR)
  4.1.4 Limitation on borrowings from overseas headquarters
  4.1.5 Interest rate trends for lending and borrowing
  4.1.6 Taxes on investments
  4.1.7 Investment limits
4.2 Key Economic Trends and Drivers
  4.2.1 National wealth indicators
  4.2.2 Financial market indicators
  4.2.3 Banking indicators
  4.2.4 Trade indicators
  4.2.5 Other indicators

5 ABOUT WEALTHINSIGHT

LIST OF TABLES

Table 1: HNWI Wealth Band and Group Definitions
Table 2: HNWI Wealth Sector Market Attractiveness, 2007–2015
Table 3: Wealth Management Industry – Main Companies Operating in India
Table 4: Wealth Management Industry – Major SFOs and MFOs Operating in India
Table 5: INR to US$ Moving Annual Average Exchange Rate, 2006–2015
Table 6: Real GDP Growth Rate, 2006–2015
Table 7: GDP Per Capita, 2006–2015
Table 8: Gross Savings as a Percentage of Real GDP, 2006–2015
Table 9: Domestic Market Capitalization, 2006–2010
Table 10: Housing Price Index, 2006–2010
Table 11: Commodity Indices, 2006–2015
Table 12: Foreign Direct Investments, 2006–2015
Table 13: Investment Inflows by FIIs in Equity Products, 2006–09
Table 14: Inflation Rate, 2006–2015
Table 15: Repo Rate, 2006–2015
Table 16: Balance of Payments, 2006–2010
Table 17: Stock Market Performance, 2006–2010
Table 18: External and Fiscal Debt as a Percentage of GDP, 2006–2015
Table 19: HNWI Wealth vs GDP, 2006–2010
Table 20: Capital Formation as a Percentage of GDP, 2006–2015
Table 21: Disposable Income as a Percentage of GDP, 2006–2015

LIST OF FIGURES

Figure 1: HNWI Wealth Band Definitions
Figure 2: HNWI Wealth Band Definitions
Figure 3: HNWI Wealth Sector Market Attractiveness, 2007–2015
Figure 4: HNWIs – India vs RoW and Asia-Pacific
Figure 5: Wealth Management Industry – Structure
Figure 6: INR to US$ Moving Annual Average Exchange Rate, 2006–2015
Figure 7: Real GDP Growth (%), 2006–2015
Figure 8: GDP Per Capita, 2006–2015
Figure 9: Gross Savings as a Percentage of Real GDP, 2006–2015
Figure 10: Domestic Market Capitalization, 2006–2010
Figure 11: Housing Price Index, 2006–2010
Figure 12: Commodity Indices, 2006–2015
Figure 13: Foreign Direct Investments, 2006–2015
Figure 14: Investments of FIIs in Equity Products, 2006–09
Figure 15: Inflation Rate, 2006–2015
Figure 16: Repo Rate, 2006–2015
Figure 17: Balance of Payments, 2006–2010
Figure 18: Stock Market Performance, 2006–2010
Figure 19: External and Fiscal Debt as a Percentage of GDP, 2006–2015
Figure 20: HNWI Wealth vs GDP, 2006–2010
Figure 21: Capital Formation as a Percentage of GDP, 2006–2015
Figure 22: Disposable Income as a Percentage of GDP, 2006–2015

COMPANIES MENTIONED

Housing Development Finance Corporation (HDFC)
ICICI Bank
Axis Bank
Reliance Money
Yes Bank
IIFl Private Wealth Management
Kotak Mahindra Bank
Karvy Private Wealth
Anand Rathi Private Wealth Management
BMA Wealth Creators Private Limited
Hong Kong and Shanghai Banking Corporation Limited (HSBC)
DSP Merrill Lynch Limited (India)
Religare Macquarie Private Wealth
CITI Private Bank
DBS Bank (India)
Edelweiss Capital
Morgan Stanley India
Standard Chartered Bank
Credit Suisse (India)
Barclays Wealth (India)
Royal Bank of Scotland
BNP Paribus
SG Private Banking (India)
UBS AG (India)
Deutsche Bank (India)
ING Vysya Bank
SMC Wealth
Azim Premji Investments
Roa Family Office
Mittal Family Office
Godrejs Family Office
Ambani Family Office
Khimji Family Office
Catamaran Venture Capital (N Murthy)
Bharti Foundation
Bajaj Trust
Evergreen Family Office
Bodhitree Family Office
Altamount Capital
Metis Family Office Skip to top