The CEO of an India-based wealth management house is quoted giving bullish predictions on growth for the wealth industry in the country.

The wealth management industry in India will expand by between 17 and 18 per cent per annum over the next few years, according to a newly-minted local player in the market.

The prediction came from Shiv Gupta, chief executive and founder of Sanctum Wealth Management, as quoted by publications PTI and The Hindu.

“The long-term growth story of India is intact despite demonetisation and there will be other cross-current developments over the next 5-6 months, Gupta was quoted as saying. 

Sanctum, founded by a group of investors, took over the Indian private banking business of Royal Bank of Scotland, the UK-listed bank, in 2015. In that year RBS, which is majority-owned by the UK government, also sold off parts of its non-UK Coutts businesses in markets such as Zurich and Singapore.

“The next five to six months are crucial,” Gupta was quoted as saying. “There will be several cross-current developments in India and overseas like demonetisation, developments in the US and Europe. The next budget will have an impact on sentiments of the investors,” the CEO said.

Demonetisation refers to the Indian government’s move to outlaw certain high-denomination banknotes in a bid, policymakers have said, to reduce corruption and the size of the so-called “black economy”.

Some critics have said the move has been abruptly announced, giving people – often some of the poorest – few options to adjust. Also, reducing cash is seen as a way for central banks to steer an economy more effectively via interest rates. (To read more about this India policy, click here.)

Reports added that Sanctum plans to create an office in Kolkata, alongside its existing offices in Mumbai, Bangaluru, New Delhi and Chennai.