UBS now hot on banking

Zurich-based UBS, which acquired Standard Chartered Bank's asset management business in the country, is now likely to enter the domestic private banking.

This is part of the Swiss banking major's aim to establish its footprint in the economy that is growing at 8-9 per cent a year. Private banking in the country mainly comprises wealth management and advisory services for high networth clients.

"We are very happy to enter the Indian asset management business. As part of our policy, we are looking at all opportunities available in this market. The country's private banking sector is definitely an attractive one. We have to consider the regulatory and legal issues before taking any such decision," Christof Kutcher, head of Asia Pacific, UBS Global Asset Management, said, over phone from Singapore.

UBS bought StanChart's local mutual fund business for $120 million (approximately Rs 540 crore) late last week. It also announced a strategic alliance with Standard Chartered for distributing asset management products in Asia, West Asia and Africa.

Standard Chartered AMC owns nearly 4 per cent of the country's total AUM (assets under management) and has most of its business coming from debt or fixed-income schemes.

Kutcher said UBS was also looking at the high-potential but yet-to-be-opened up pension fund market and other financial services businesses "� such as portfolio management "� in the country.

"Risk management has been an area where we have complete expertise. We would be using our capabilities to grow our asset management business here by introducing innovative ideas. At present, we are discussing the various features of Indian markets with our counterparts here and will begin as soon as we receive the regulatory approvals," he added.

Asian economies, including India and China, have witnessed almost three-fold faster growth than their European counterparts over the past few years. The private banking industry in Asia has been flourishing with global majors entering it.

UBS already has private banking services in Hong Kong, and analysts think the purchase of asset management business in India could help the company gain further ground here. UBS, which had entered China two years ago, acquired an AMC in Brazil as well last year.