UBS Group AG is considering forming a partnership in India’s wealth management sector to
navigate the fiercely competitive market. The Swiss bank is in early discussions about
options, including acquiring a stake in a local firm to create a joint venture, according to
sources. While no final decision has been made, such a move could help UBS expand its
small presence in India by reaching more wealthy clients.
India’s rapid wealth growth has attracted global banks, though they face stiff competition
from established local players. UBS, which exited India’s onshore wealth business nearly a
decade ago, is now integrating the Credit Suisse team it acquired to re-enter the market.
However, the firm has struggled with staff retention, as competitors have poached several
senior executives.
UBS has joint ventures in Japan and China, where local firms dominate, and is now weighing
similar options for India. However, the rising valuations of wealth management businesses in
India may pose challenges. The country’s booming economy and stock markets have made
wealth management firms increasingly attractive to private equity investors. Banks like
HSBC and Barclays, along with local giants such as SBI and HDFC Bank, are also expanding
their wealth management offerings to capture more of India’s growing affluent population.
