India is emerging as a shining star in Asia with macro tailwinds favoring economic development and wealth generation. Global financiers are increasingly chasing private banking opportunities in its onshore market.

Favorable demographic trends and a strong economic growth trajectory, are driving positive developments across the board in India. Its richest are seeing some of the benefits with the number of high net-worth individuals expected to more than double from nearly 800,000 in 2022 to 1.66 million by 2027, according to Knight Frank data.

As a result, numerous financial institutions are setting up new private banking divisions or upping their ambitions in the onshore market.

Market Re-Entry

For some of the contending players, operating in India’s onshore market isn't a fresh experience.

HSBC launched a private banking arm in the country earlier this month, re-entering a market it exited in 2015. The new business will target clients with investable assets of over $2 million with plans to hire around 30 private bankers.

UBS is also re-entering the onshore market after inheriting the business from the government-brokered takeover of Credit Suisse. Its wealth management unit in India will be led by ex-Credit Suisse banker Puneet Matta.

Wealth Opportunity

Elsewhere, private banks are making their inaugural entry into India's wealth market or looking to further expand. LGT launched wealth management services onshore in October 2022 through a local entity that employs more than 200 staff with a presence in 14 cities including Mumbai, Delhi, Chennai, and Bengaluru.

Julius Baer has had a presence in India since 2015 as part of the broader acquisition of Merrill Lynch’s international wealth management business. In August last year, it rolled out a five-year transformation strategy aiming to double the number of relationship managers and clients, triple assets under management, and extend reach to new cities.

Barclays is doubling down on India in a rare move of making Mumbai the base for its newly hired Asia private banking head, Nitin Singh. Singh is a 20-year veteran and former Avendus Wealth Management executive who previously also held leadership roles at Standard Chartered and HSBC.