ABN Amro pvt banking arm aims big

The private banking arm of ABN Amro Bank plans to increase its assets under advice to Rs 4,000 crore and 1,700 clients in the next five years.

Addressing mediapersons Sutapa Banerjee, senior vice president, head-private banking, India said, " We operate in a very niche market, with the threshold limit for offering our investment advice fixed at a minimum of Rs 2.5 crore." Security of clients' investment information is key to the market to which they cater, she added.

At present the bank's private banking segment has about Rs 1,200 crore asset under advice between 400 clients. The private banking has presence in New Delhi, Mumbai, Bangalore and Chennai.

"We plan to expand to nine cities and increase the number of relationship managers to 40 from 16 in the next three years," she informed.

Banerjee commented that the margins made by players in this niche market range between 1 and 1.5 per cent of the asset under advice.

This market is only dominated by few players such as HSBC, Deustche Bank and mutual funds like DSP Merrill Lynch. The bank sees potential in providing specialist art advice and acts as an intermediary between buyers and sellers of art and a professional methodology of valuing art.

Its international presence provides access to a network of high net worth individuals with a special interest in art.