EFG International, Switzerland’s third-largest private banking major, is understood to be eyeing $3-billion assets under management (AUM) in India in the next three years.
The company recently completed acquisition of a 75 per cent stake in Stratcap Securities India from Strategic Capital Corporation. The acquisition has given EFG International an AUM of $500 million in India and, according to sources, it is looking at multi-fold growth at its Indian operations.
EFG International is a global private banking group, offering private banking and asset management services. Headquartered in Zurich, EFG International’s group of private banking businesses currently operate in 50 locations in over 30 countries with more than 2,000 employees. EFG International is a member of the EFG Group headquartered in Geneva, Switzerland, and is the third-largest banking group in Switzerland by tier-I capital, having an AUM of around $100 billion.
Speaking on India plans, Shankar Dey, CEO, EFG Wealth Management India, was non-committal on the $3-billion target, but said the bank was planning to increase its AUM. However, industry sources indicate that with EFG’s focused private banking services, the target of $3 billion may not be a difficult task to achieve.
“The markets are pretty tough and we would not like to put a number on how the AUM will be three years down the line. We have got a team going and we are expanding this,” Dey said. EFG has recently hired Manoj Shenoy, an executive director from Anand Rathi Securities, to drive the bank’s growth.
Dey added that the acquisition of Stratcap is in line with EFG International’s strategic goal of capitalising on new growth markets. EFG gets a ready platform, which offers a range of financial services to a private and institutional client base in India, encompassing mutual funds, equities and fixed-income instruments.
EFG’s move to expand in India comes at a time when global investment opportunities are dwindling and liquidity is being tightened. “This business entirely depends on relationships and how we deliver value to our clients,” Dey added.
