Barclays to raise wealth management manpower in India

British lender Barclays currently employs 120 people in its wealth management business in India

British bank Barclays today said it would increase its personnel at the wealth management division here by up to 15 per cent this financial year, even as gloomy economic conditions make the going difficult for its peers.

“We will add 12-15 per cent (four-six people) to our client facing staff this financial year,” Barclays wealth and investment management chief executive Satya Narayan Bansal told reporters here.

He said the British lender, which has been drawing down its retail lending activity in the country and is embroiled in the Libor rate rigging scandal, employs 120 people in its wealth management business, of which 40 are field staff.

 

A majority of the new hires would come from the investment and corporate banking space as well, Bansal said, adding a fourth of its force was currently from a corporate banking background.

He said the wealth management or private banking industry was in a phase of consolidation at present as business is getting thinner due to gloomy economic conditions, but stressed that his company was unaffected by it.

The weaker players would go out of business, Bansal said, adding Barclays was open for any growth opportunity, but added acquisition was not part of its growth strategy.

Bansal said the regulators’ decision to allow direct selling of insurance and mutual funds would also have an adverse impact on the domestic industry as a majority of the players derive maximum revenue through distribution of these products. He stressed for Barclays, the impact would be minimal as its income was distributed. He said, “Our growth journey has been good since starting business in November 2008. We are growing by 30-35 per cent on assets under management and revenues, twice the industry average, and the business is in line with expectations.”

When asked about the impact of events like the one with its parent in London as well as the domestic one while working with the high networth individuals, Bansal said it was not much as the clients do appreciate that mistakes do happen.