By IANS,
Chennai : As a first step towards launching a portfolio management services subsidiary, the city-based Indian Bank launched wealth management advisory services to its high net worth clients, said a top official. “As per a study done in 2007, around $250 billion investible surplus is available in India and this figure will go up to $1 trillion by 2012,” the bank’s chairman and managing director M.S. Sundara Rajan said at a function here Saturday.
He said the bank will start the advisory services on a pilot basis in Chennai with five customer relationship managers. Each one will manage at least 50 clients.
The bank will not be charging anything extra for this value-added service and hopes to increase its fee-based income by selling other financial products like mutual funds, insurance and others.
Going forward, the bank plans to expand the services to other metros taking the number of wealth advisors to 50.
According to an official, once the bank has around 2,500 clients for its wealth advisory services, it will get into tier II and III cities by recruiting people from outside.