Private bankers ride the swell in the ranks of the wealthy

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Subscribe to enjoy similar stories. There never has been a better time than now to manage the wealth of the rich, as the parabolic rally in equities in the post-pandemic era swelled the ranks and bank balances of the extreme rich in both metros and tier-II cities. Private bankers, whose job it is to manage the finances of such wealthy individuals, are ballooning in headcount, and their salaries, too, are skyrocketing as demand shoots through the roof and they jump jobs as well.

The number of private bankers in the wealth management industry has almost doubled in the past two-three years, data compiled by Native, a homegrown headhunting firm, shows. Today, there are around 3,200 private bankers in India across metro, tier-I and tier-II cities, compared to just around 2,000 bankers two years ago, the data compiled exclusively for Mint shows. Their compensations, too, have kept pace.

Those earning more than ₹2 crore annually have doubled from 100 executives in 2022 to around 200 as on date, the data from Native shows. Similarly, the number of people earning more than ₹1 crore in annual compensation has doubled from around 250 people in 2022 to 500 as on date. This effectively means every one in five private bankers earns more than ₹1 crore in annual salary today.

“Esops have long been a crucial factor in attracting private bankers. Following the successful listings of firms like 360 One WAM, Nuvama, and Anand Rathi, they have become a key determinant in talent acquisition, particularly for senior-level positions," said Shujat Ali, director of private banking practice at Native. Post-covid, the surge in capital markets has coincided with the growth of the wealth management industry, of which private bankers are a part.