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June 17, 2020

BNP Paribas pulls plug on India wealth management business

French banking group BNP Paribas has closed its wealth management business in India citing strategic reasons.

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Analyze opportunies within the wealth management market in APAC

GlobalData’s ‘Asia-Pacific Wealth Management: Market Sizing and Opportunities to 2026’ report provides a comprehensive overview of the Asia-Pacific (APAC) wealth management market.
  • The report analyzes the APAC wealth and retail savings and investments markets. This includes affluent market size, both by number of individuals and the value of their liquid assets.
  • The affluent population grew by 5.3% in 2021 and is expected to grow at an AAGR of 4.8% between 2022 and 2026.
  • The value of liquid assets held by the affluent segment surged by 8.4% in 2021, backed by economic recovery. HNW individuals’ financial wealth grew by 12%, while mass affluent individuals’ wealth grew by 6.0%.
  • The report provides an analysis of factors driving liquid asset growth. It is also split into asset classes - equities, mutual funds, deposits, and bonds.
  • The affluent population are more risk-tolerant and invest a significant proportion of their investments in risky assets such as equities, compared to emerging affluent and mass market individuals.
The report also provides data and insights on the size of offshore holding of HNW investors in the APAC region.
by GlobalData
Enter your details here to receive your free Report.

The move is said to have been caused by the firm’s focus on corporate and institutional banking operations, reported PTI.

However, the banking ruled out the Covid-19 crisis as the reason behind the closure.

Confirming the news, a bank spokesperson noted: “BNP Paribas Wealth Management has decided to exit its onshore wealth management business in India in order to focus on areas where its global footprint and diversified business strengths allow it to provide clients with more value-added services.”

The concerned business employs nearly 60 people in India.

These employees can move to other businesses including Sharekhan, a BNP Paribas unit that serves HNWIs.

Affected staff can also move to the bank’s offices in Hong Kong or Singapore.

The spokesperson did not mention the unit’s client base.

The spokesperson said clients will be referred to Sharekhan in the future when required.

“We can confirm that a number of roles will be affected. As we are currently looking for redeployment opportunities within the Group, it would be inappropriate to comment further,” the spokesperson added.

BNP Paribas has been operating in India for 160 years and since 2012 has made investments of €800m in the country.

The bank commits to further growing its business in India.

Its overall staff headcount in the country is 13,000.

Notably, last year, BNP Paribas and Bank of Baroda agreed to merge their asset management businesses.

Meanwhile, last month, BNP Paribas launched securities services operations in Mexico.

 

Free Report
img

Analyze opportunies within the wealth management market in APAC

GlobalData’s ‘Asia-Pacific Wealth Management: Market Sizing and Opportunities to 2026’ report provides a comprehensive overview of the Asia-Pacific (APAC) wealth management market.
  • The report analyzes the APAC wealth and retail savings and investments markets. This includes affluent market size, both by number of individuals and the value of their liquid assets.
  • The affluent population grew by 5.3% in 2021 and is expected to grow at an AAGR of 4.8% between 2022 and 2026.
  • The value of liquid assets held by the affluent segment surged by 8.4% in 2021, backed by economic recovery. HNW individuals’ financial wealth grew by 12%, while mass affluent individuals’ wealth grew by 6.0%.
  • The report provides an analysis of factors driving liquid asset growth. It is also split into asset classes - equities, mutual funds, deposits, and bonds.
  • The affluent population are more risk-tolerant and invest a significant proportion of their investments in risky assets such as equities, compared to emerging affluent and mass market individuals.
The report also provides data and insights on the size of offshore holding of HNW investors in the APAC region.
by GlobalData
Enter your details here to receive your free Report.

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