Mumbai: Even as economy turtles south, private sector lender Axis Bank on Monday launched a wealth management offering aimed at the growing numbers of the ultra-rich.
The new product is targeted at those who can deliver a "relationship value" of over Rs 5 crore, as against the earlier Rs 30 lakh under the five-year-old old product.
The management cited independent research that expects a doubling of both the number of the ultra high networth individuals to 2.63 lakh by 2025 from 1.53 lakh, and a higher growth in their wealth to USD 2.6 trillion from present USD 1.07 trillion over the next six years, for the launching 'Burgundy Private'.
Managing director and chief executive Amitabh Chaudhry said the "time-poor" rich ensure their business growth, they may not be doing the right thing in managing their personal wealth, creating the need for advisors.
He said it is a "myth" that advisory is dominated by non-banking players and that he wants to change this notion.
Axis Bank has built a team of 70, mostly picked from rivals, executive director Pralay Mondal said, adding their only target is to add wealthy clients and not just grow the assets under management.
In the five years since launching the earlier offering targeted at the less-affluent, the bank has around 1 lakh clients now with an assets under management of Rs 1.38 lakh crore, Chaudhry said.
When asked about fees, he said there will be advisory fee, but the same shall vary based on the asset class.
Meanwhile, the bank also launched a three-in-one card--credit, debit and forex card.