The Hindu Business Line : ICICI Bank’s high networth individuals segment to grow 50%

Kolkata, June 26 ICICI Bank’s ‘high networth individuals’ segment — comprising both global private clients and wealth management — is set to witness a growth of 50 per cent in 2008-09, according to Mr Vivek Kanwar, General Manager (Retail Liabilities) and Head of Global Private Client Domestic.

“We have seen a growth of 50 per cent on a year-on-year basis and are likely to witness a similar trend this year as well,” he said, in a teleconference with Business Line.

The bank currently has about 1,50,000 clients (2,500 families in global private clients). Talking about the growth prospects in various segments, Mr Kanwar said though the $1-million segment has been witnessing a growth of about 20 per cent on an annual basis, those falling in the affluent $1 lakh category account for the maximum growth in the high networth individuals’ segment. “We have close to 10 lakh Indians who fall under this category, thereby offering good potential,” he said.

Though the bank has experienced good growth potential across various regions, Mr Kanwar said the southern regions — particularly cities such as Bangalore, Hyderabad and Kochi — offer good potential. ICICI would strengthen its wealth management team in these areas so as to tap the potential.

Sub-prime advantage

The sub-prime crisis has had little impact on the bank’s wealth management business. However, it has helped boost the demand for certain capital guaranteed structured products. “The sub-prime crisis has not had any major impact on our business. In fact we are using this opportunity to offer capital guaranteed structured products to our clients,” he said.

According to Mr Kanwar, real estate, art funds and gold exchange traded funds are the key drivers of the business. The corporatisation of the Indian film industry also stands to offer a potential market for wealth management, he said.

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