Now, Citibank eyes super-rich here

MUMBAI: The growing list of Indians with a high net worth are set to be wooed further with global banking major Citibank setting its sights on this segment to offer private banking services.

Citi has now forayed into a segment which several major foreign banks are currently targeting. The bank has launched Citigroup Private Bank, a division of Citibank NA, to target ultra high net worth Indians.

Membership into this exclusive club doesn’t come easy. Only those with a net worth of at least $10m could be potential clients.

India’s private banking market is reckoned to have grown by 50-100% YoY during the past three-four years, powered by one of the fastest growing economies in the world.

Currently, there are only a handful of entities that offer the high-end of private banking in India.

These include ABN Amro, BNP Paribas, Deutsche Bank, DSP Merrill Lynch, besides Soc Gen. Others like UBS and Credit Suisse are looking at launching private banking services in India. HSBC is in the process of launching this service in India.

Currently, most of the existing players are targeting clients with an investible surplus in the range of Rs 1-4.5 crore.
Citigroup Private Bank has appointed Puneet Matta as chief officer, India, for leading its onshore wealth management business. “Unprecedented levels of wealth creation is expanding the size of the country’s affluent and high net worth market, and the need for new standards in wealth management,” says Deepak Sharma, CEO, Citigroup Global Wealth Management, Asia-Pacific & Middle-East.

Says Matta, “We are targeting the family-owned business and some of the high n et worth employees.” Currently, Citi has eight private bankers who are based in Mumbai. It is looking at expanding to another five-six cities over the next 12 months.

Existing players like ABN Amro, which had launched its private banking in ’02, are also increasing their headcount and geographical spread. “

The private banking unit is looking at tripling its business in the next five years. We are increasing our geographical spread in the next 18-24 months from four cities to 10.

There is a huge focus on the owner-promoters of mid-market companies as well as self-employed professionals. Non-resident Indians is also a focus area,” says Sutapa Banerjee, head (private banking), ABN Amro.

ABN Amro has close to 700 client groups with assets under management of above $700m. The bank is also looking at an aggressive hiring plan from its current base of 50.