India's wealth management and private banking sector is on a roll, as an affluent middle class fuels demand. Salaries, commissions, signing bonuses and share bonuses are rising fast, but there may be dangers ahead.

There is a fight for private banking and wealth management talent in India, which is driving bonuses, stock options, salaries and commissions, according to a Bloomberg report this week. 

The news service quoted Prateek Gupta, associate director, talent solutions for India at Aon, the consultancy, saying that experienced relationship managers are landing salary hikes of as much as 40 per cent. Newer wealth management firms are offering bankers 50 per cent or more of the revenue they generate.

The report noted that brokerage Angel One Ltd’s Ionic Wealth, which manages around 38 billion rupees ($442 million), has appointed 70 client-facing bankers in the last 14 months and plans to hire another 35 this year, adding to its existing team of 185. Stock options are part of its pitch to new hires.

India, benefiting from a rising affluent middle class and a buoyant equity market, is attracting wealth managers. And that is prompting higher rewards for luring talent.

The newswire said that experienced relationship managers with at least eight to 10 years of experience, managing $50 million or more in client assets, can earn more than $90,000. While compensation in more developed markets such as Hong Kong and Singapore is often higher, the rate in India has increased to about 60 per cent versus two years ago.

The report said that senior bankers want packages of more than $150,000 in India even before a joining bonus and stock options, nearly doubling from a year earlier.

As reported in January, HSBC opened a “state-of-the-art” 12,550 sq ft office in GIFT City (Gujarat International Finance Tec-City), marking a significant milestone as it builds a presence in the country.

The wealth management services are aimed at HSBC's Premier and private banking clients who want to invest in global markets; these are also aimed at non-resident Indians seeking investment opportunities in India.

The India disapora is also an important wealth management market, as DBS, the Singapore-headquartered bank, noted in 2024.