Kotak Group’s private wealth management arm aims to increase assets under management (AuM) in its Indian onshore business by 20-25% by March 2012.
C Jayaram, Kotak’s executive director in charge of private wealth management, said AuM currently sits at about INR16,000 crores ($3.6bn). Asset growth is expected to be split 50:50 between its existing client base and new client assets.
This growth is in part powered by India’s swelling high net worth (HNW) and ultra HNW population.
The 2011 Capgemini/Merrill Lynch World Wealth Report said India now has the twelfth-largest HNWI population (153,000) in the world.
Kotak provides a full service private banking service, including a wide product range spanning equity, fixed income, real estate and commodities, estate planning business, and lines of credit, against investment and real estate.
India’s lack of skilled private bankers is Kotak’s chief challenge, Jayaram said.
“There are not that many experienced private bankers in the Indian space,” he said.
“You have a lot of young guys but in terms of people who have done 7 to 10 years’ experience there are not many.”