Need a wealth management service? Oh it?s the need of only snooty riches, you have been thinking so far.
But the rise of individuals with middle net worth may make you think otherwise.
According to industry sources, people with net worth of Rs 10 lakh and above are growing at a scorching pace. Many individuals in this category are poised to hit the Rs 1 crore-mark soon, and bankers are finding it lucrative to net them ?half-way.
?Our emerging HNI (high net worth individuals) business (Rs 50 lakh and above) is growing in excess of 100% year on year,? exudes Wealth Advisors India?s director and CEO V Mahadevan.
ICICI Bank is also bullish about its ?mass affluent? (Rs 10 lakh to- one crore) wealth management vertical. Says ICICI Bank general manager, (investment) Kanwar Vivek, ?Earlier, this kind of wealth was normally associated with SME owners and wealth inheritors. Now, wealth is being created across classes and sectors.? Think serial entrepreneurs, the booming start-up culture and first generation promoters selling stakes in their ventures. In fact, ICICI Bank estimates that 200-300 of its relationships in the mass affluent category to move into private banking (Rs 1 crore and above) very soon.
Like ICICI, HDFC Bank?s private and wealth banking division services almost 6,000 customers. ?Apart from wealth inheritors, farmers and professionals from India?s middle-class also form an important customer base,? reveals Abhay Aima, country head, equity, private banking and third party products, HDFC Bank.
Aima has a point. The rising stock market has ushered in Esops millionaires, middle-class executives who made hay while the stocks shone. Also, with salaries in corporate India hitting the roof, these executives are busy hiring wealth managers.