Report: Tapping the Indian Wealth Market TOC

CHAPTER 1 EXECUTIVE SUMMARY

Introduction

What is this report about?

Who is the target reader?

Macroeconomic Background

Population and GDP

Economic growth is strong, but GDP per capita remains low

Interest rates

FDI

Retail savings and investments

Regional wealth

Affluent individuals

Customer profile

Offshore tendency

Restrictions on offshore investment

Though there is some money flowing offshore

Non-resident Indians (NRIs)

Affluent individuals and their assets

Financial services

The stock market

Banking structure

The players

Onshore Private Banking and wealth management

Wealth management is at an immature stage in India

Private sector retail banks dominate wealth management

Products and services are relatively simplistic

Future outlook

Customer outlook

Wealth market outlook

Domestic banks scale advantages are highly important in an unaware and immature market...

...but international competitors have greater product and service capabilities

Foreign competitors investment management propositions are more sophisticated

Indias advantages will continue to attract wealth managers

CHAPTER 2 INTRODUCTION

What is this report about?

Who is the target reader?

How to use this report

Report Methodology

CHAPTER 3 INDIA

Introduction and macroeconomic background

Population and GDP

Indias population is large and - for the most part - poor

Economic growth is strong, but GDP per capita remains low

Interest rates

FDI

Retail Savings & Investments

Regional wealth

Affluent individuals

Customer profile

Offshore tendency

Restrictions on offshore investment

Return on investment

Though there is some money flowing offshore

Non-resident Indians (NRIs)

Affluent individuals and their assets

Mass affluent

High net worth

Financial services

Liberalization of rules surrounding foreign entry

Regulations prohibit foreign majority ownership

Domestic banks are in need of capital

Changes in ownership rules are just part of a broad range of regulatory changes

The stock market

Banking structure

Local players

Foreign entrants

Onshore private banking and wealth management

Wealth management is at an immature stage in India

Private sector retail banks dominate wealth management

Products and services are relatively simplistic

Competition is clustered around the mass affluent customer segment with few true private banking services availiable

Restrictions on portfolio management

The competitors

ABN AMRO

Deutsche Bank

HSBC

HDFC Bank

ICICI Bank

Future outlook

Customer outlook

Mass affluent segment

High net worth segment

Wealth market outlook

Domestic banks scale advantages are highly important in an unaware and immature market...

...but international competitors have greater product and service capabilities

Foreign competitors investment management propositions are more sophisticated

Product manufacturing expertise is needed, and being utilized in India

Indias advantages will continue to attract wealth managers

Data

CHAPTER 4 APPENDIX

Definitions

AAGR

CAGR

Gini index

Liquid assets

Liquid asset bands

Research methodology

The Global Wealth Model

The UK sub model

Asia-Pacific sub model

Forecasting methodology

Datamonitors wealth numbers compared with others numbers

Bespoke Wealth Market Sizing

List of Tables

Table 1: Total deposits and credit outstanding by banking group, September 2004
Table 2: Datamonitors wealth market coverage
Table 3: Deposits held by population at all commercial banks split by state of branch, September 2004
Table 4: Total deposits and credit outstanding by banking group, September 2004
Table 5: Major wealth managers within India, 2004
Table 6: Comparison of domestic and foreign competitors private banking product and service range, 2004
Table 7: GDP and S&I growth over the 1998-2003 period
Table 8: Indian retail liquid assets, 1998-2003
Table 9: NRI deposits by type, 1999-2003
Table 10: Number of Indian mass affluent individuals, 1998-2003
Table 11: Liquid assets of Indian mass affluent individuals, 1998-2003
Table 12: Number of Indian high net worth individuals, 1998-2003
Table 13: Liquid assets of Indian high net worth individuals, 1998-2003
Table 14: Forecasted retail liquid assets, 2003-2008
Table 15: Forecasted number of Indian mass affluent individuals, 2003-2008
Table 16: Forecasted liquid assets of Indian mass affluent individuals, 2003-2008
Table 17: Forecasted number of Indian high net worth individuals, 2003-2008
Table 18: Forecasted liquid assets of Indian high net worth individuals, 2003-2008
Table 19: Wealth markets that have been modeled using the Global Wealth Model

List of Figures

Figure 1: Savings and investment assets in India have exhibited strong growth over the last five years
Figure 2: The liquid wealth of mass affluent individuals in India grew at a rate of 17.2% CAGR over the 1998-2003 period
Figure 3: Positioning of key wealth mangers according to broad customer segment and product range, 2003
Figure 4: Those individuals with more than USD150,000 will own approximately 50% of total retail liquid wealth in 2008
Figure 5: Methodology diagram and report structure
Figure 6: Major components of Indian GDP, %, 2003
Figure 7: Indias bank rate has been reduced by the Reserve Bank in recent years in an attempt to stimulate investment
Figure 8: Savings and investment assets in India have exhibited strong growth over the last five years
Figure 9: Deposits remain the primary investment vehicle but are decreasing in importance among Indian investors
Figure 10: The market for NRI deposits is valuable and growing fast
Figure 11: The liquid wealth of mass affluent individuals in India grew at a rate of 17.2% CAGR over the 1998-2003 period
Figure 12: The number of Indian HNW individuals in the USD3M+ liquid asset band grew by 20.6% AAGR over the 1998-2003 period
Figure 13: Positioning of key wealth mangers according to wealth of customer segment and breadth of product range, 2004
Figure 14: Those individuals with more than USD150,000 will own approximately 50% of total retail liquid wealth in 2008
Figure 15: The mass affluent population will grow at a rate of 10.4% over the 2003-2008 period
Figure 16: There will be 45,300 more high net worth individuals in India in 2008 than in 2003