Barclays Wealth expects to grow at 20% in India
Barclays Wealth India plans to cater to business families across the country through its offices in five cities including Mumbai and Delhi.
Barclays Wealth India's Chief Executive Satya Narayan Bansal told ET that the company ha aggressive plans to reach out to the country's growing rich.
"We are using the hub and spoke model to expand our business. Our Delhi office caters to North, Mumbai services to western and central India; Chennai and Bangalore offices cover South while Kolkata takes care of the eastern India. We are planning to add 15-20 professionals to our team of 100 odd members," he said.
Barclays started its Indian private banking operations November 2008. It has a client base of over 500 business groups with annual turnover in excess of Rs 50 crore. "India has a great potential. We expect 1.9 million Indians to cross $1 million in investable surplus by 2012. But business families in India are conservative in a sense that they manage and pass over their wealth in consultation with their trusted lawyers, friends and chartered accountants. We are creating awareness among them about benefits of engaging professionals like us," he said.
The reluctance of Indian rich to discuss issues relating to inheritance, succession planning and wealth management makes it a lengthy process for players like Barclays. "It takes lots of persuasion and deliberations before the Indian rich agrees to seek professional support in wealth matters.
The turnaround time for Indian business houses is 9-12 months as against in the UK and the US where it's just 3-4 months. We expect it to come down as with growing prosperity comes the need for increasing the focus on financial risks and the tools to manage the same," Barclays Wealth advisory managing director J Rodney Allen said.
Mr Allen said Barclays may start its operations in China and Japan in the near future. "Right now we are servicing rich people of these countries through our Singapore office. But the way these countries are growing we may have our presence to service them well," he said.