Royal Bank of Scotland Group Plc (RBS) expects to triple its private banking assets to $3 billion in India over the next four to five years, said Shiv Gupta, the company’s country head for private banking.
The U.K.’s biggest government-controlled bank, which manages $1 billion of assets for private banking clients in India, plans to increase its wealth management employees by 54 percent to 100 in two years, Gupta said. The bank will also add 20 more relationship managers in the country, taking the total to 45 in that period, he said.
“For the wealth division, India is a priority growth market, one of 15 across the world,” Gupta said in an interview yesterday. “We expect assets under management from Asian markets to grow between 30 percent and 40 percent per annum.”
India’s wealthy may almost double their assets to $6.4 trillion over the next five years as the world’s second-fastest growing major economy boosts the country’s rich, Credit Suisse Group AG said in its global wealth report in October. Asia, Eastern Europe and the Middle East are the fastest-growing markets for RBS’s private banking unit over the next five to six years, Gupta said.
The bank is competing with rivals including Morgan Stanley, UBS AG (UBSN) and Citigroup Inc. (C) to hire financial advisers in the region. The combined wealth of millionaires in the Asia-Pacific region will increase 8.8 percent annually until 2018, compared with a global average of 7.1 percent, according to a report by Capgemini SA and Merrill Lynch Wealth Management.
The U.K. lender’s largest private banking markets by assets are the U.K., Europe, Middle East, North Asia and Southeast Asia, Gupta said. RBS currently manages about 800 family accounts in India through offices in Mumbai, Delhi, Chennai and Bangalore, he said. The lender accepts a minimum of $1 million from private banking clients.
To contact the reporter on this story: Pooja Thakur in Mumbai at firstname.lastname@example.org.
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