The Hindu Business Line : BNP Paribas plans entity for portfolio management services

The bank plans to grow its private banking business by 25-30 per cent in a year to touch 500 relationships in 15 months. A relationship consists of a number of individuals in a household with investible surplus of over Rs 1 crore.

Mumbai , June 28

THE French financial services group BNP Paribas has plans to set up a separate entity in India to offer discretionary portfolio management services (PMS).

"We will bring in $5 million and start a separate entity through a joint venture with a local partner. We are yet to take a final decision on it after which we will talk to the regulator, Securities Exchange Board of India," said Mr Michel Longhini, CEO, BNP Paribas Private Bank, at a press conference held here today.

The bank, which currently operates under a banking licence, cannot manage portfolios due to regulatory constraints but can only offer advice on investments therefore the need for a separate entity.

The French bank, which had exited retail banking in India about three years back, now has about 250 relationships in its private banking business. A relationship, as defined by the bank, consists of a number of individuals in a household with investible surplus of over Rs 1 crore. The bank plans to grow its private banking business by 25-30 per cent in a year to touch 500 relationships in 15 months, said Mr Sharad Sharma, Head-Private Banking, BNP Paribas India, who was also present at the conference.

The bank had received a capital infusion of $45 million last year and plans to retain its profits in the country in the current year.

In the wealth management business in Asia, India figures second in rank after Singapore for BNP Paribas.

BNP Paribas, which focuses on corporate banking and private banking activities, is present in six cities. "We have seen good growth in Mumbai, Delhi and Kolkata. We need to reinforce our presence in the South," said Mr Sharma.