Chennai, October 28:

A booming economy that spawns ‘dollar millionaires’ by the day has led new generation private banks in India to offer premium wealth management services to high net worth individuals. There are today an estimated 100,000 such dollar millionaires in the country and the number is growing at an annual rate of 20 per cent.

Targeting this ultra-premium segment, private sector banks are now offering individualised banking services. Simply put, it is advanced wealth management services offered to individuals and entities with large investment portfolios.

Each bank has different thresholds for customers who can avail the premium service.

For some new generation private banks like ING Vysya Bank the level is at Rs 40 million Indian Currency (IC). For others like Standard Chartered it is $1 million (Rs 39.3 million IC).

These two banks recently launched their premium banking services in India.

Explaining the rationale for high threshold, Samir Bimal, country head, private banking, ING Vysya Bank, said, “The kind of investment advice that people with this kind of investment portfolio look for is different from others. Private banking is distinctly different

from other wealth management services offered by banks.” He says the Reserve Bank of India’s decision to permit Indians to invest up to $200,000 overseas in a year would provide a fillip to private banking services in the country.

“Earlier, the investment limit was low and, hence, there were no takers. But with the current limit, there are investors who would like to make overseas investments,” remarked Bimal.

Normally, people from stock broking houses and corporate banking departments fit the bill.