KOCHI: From the country’s top destination for consumption to the third most important wealth management hub, Kerala’s makeover is complete. Just as the state continues to be the hot point for automobiles, white goods and a whole lot of other expensive gadgets, big ticket saving was not one of its known virtues.
Now, that’s all set to change. State Bank of India (SBI), India’s largest bank, has bypassed Mumbai, Chennai, Pune and Hyderabad to zero in on Ernakulam region to unfurl its wealth management products. It has also lifted Kerala’s central business district to the third slot behind Bengaluru and Delhi as one of the most preferred places where banks/ financial institutions will look to roll out mutual fund, debt, equity and portfolio management products.
Sanjeev Kumar G, the founder of Progno Advisor, a financial consultant, said Kerala, with huge NRI deposits, was a “virgin land” for wealth management products. “There is a huge potential for wealth products. NRIs in Kerala have been untapped for such sophisticated products,” he said.
“The cost of operation is low in Kerala. It is a test market for big-ticket financial products. With SBI entering the market, other PSU banks may follow suit,” said Sanjeev Kumar. As per the latest data, NRI deposits are about `1.43 trillion - a third of the total deposit base of Rs 4.3 trillion with the banks in Kerala. S Venkataraman, SBI chief general manager, said the bank’s product was aimed at giving expert advice to well-heeled customers about investing their money. “Our product ‘SBI Exclusif ’ is targeted at the fast-growing affluent in the country.
We launched the product in Ernakulam last month and the response has been overwhelming,” he said. The customer should maintain minimum Rs 30 lakh with the bank across current and savings accounts, including mutual funds and equities, to enter the SBI ‘Exclusif ’ club. Federal Bank was one of the first private entities to identify the potential of wealth banking in Kerala.
“Our product - ‘Fed Select Premium’ - targets our top clients with a minimum deposit of Rs 25 lakh,” said Jose K Mathew, general manager, retail, Federal Bank. “If our customers are interested in investing a portion of their money in products offering better returns, our relationship managers will help them based on their risk appetite,” he said.