In 2018, the BNP unit was the largest foreign wealth manager with $13.79 billion AUM; Wealth management clients will be referred when appropriate to group co Sharekhan, which is also planning a discount broking arm
BNP Paribas Wealth Management has decided to exit its onshore wealth management business in India. The banking group said it is doing this in order to focus on areas where its global footprint and diversified business strengths allow it to provide clients with more value-added services.
Among the oldest wealth managers in India, BNP Paribas Wealth Management team worked with many leading business owners and industrialists in India in managing their personal wealth. As per Asian Private Banker, India AUM League Table 2018, BNP Paribas Wealth Management was the biggest foreign unit in India with $13.79 billion in assets under management. In 2017, the BNP unit had dethroned Standard Chartered Private Bank to become India’s largest foreign private bank. Overall, BNP Paribas Wealth was ranked 5 behind Kotak Wealth (1), ICICI Private Bank (2), IIFL Wealth (3) and Edelweiss Wealth (4).
This decision is unrelated to the current pandemic and has no impact on continued wealth management growth strategy in Asia, which remains an important growth engine for global franchise, according to BNP Paribas.
Wealth Management clients will be referred when appropriate to Sharekhan, BNP Paribas’ growing wholly-owned subsidiary for brokerage and investment services for individual clients, a spokesperson told RupeeIQ in an emailed statement.
BNP Paribas, which has had a continuous presence for more than 160 years in India, continues to focus on growth of its Corporate & Institutional Banking franchise in the country. It said it has injected almost €800 million euro in capital since 2012 to support India growth aspirations. It is setting up an Asset Management JV with Bank of Baroda to distribute Mutual Funds in India and abroad. Sharekhan, a full subsidiary of BNP Paribas, is also foraying into the discount brokering category via a new subsidiary company.
Apart from traditional investment advice and a wide range of products and services, BNP Paribas Wealth Management provided Corporate Finance Solutions and offered dedicated support to Family Office platforms through a network of group companies.
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