Banks now keen to manage your wealth

Chennai, Mar 28: Wealth management is no longer the preserve of private and foreign banks. Nationalised banks and small private sector banks are also firming up plans to offer services to the HNI (high net-worth individual category). “We have plans to open specialised branches for high net-worth individuals,” says MS Sundara Rajan, chairman and managing director, Indian Bank.

Indian Overseas Bank is also looking to tap the HNI segment. The emergence of the middle net-worth category (people whose net-worth is Rs 10 lakh and above) is forcing everyone to grab a share of the wealth management space.

HDFC Bank’s private and wealth management division services almost 6,000 customers. Farmers and professionals from the great Indian middle class form an important customer base for the bank. ICICI Bank expects 200-300 of its relationships in the ‘mass affluent’ category (people whose net worth is upwards of Rs 10 lakh) to move into the one crore bracket pretty soon.

Smaller private banks are also not missing the opportunity. Tamil Nadu-based City Union Bank (CUB) recently announced its foray into the wealth management space. CUB in association with Wealth Advisors India will offer wealth management services to its customers.