BNP Paribas closes wealth management business in India

Answer: Banque de Paris et des Pays-Bas S.A. (Paribas, Bank of Paris and the Netherlands) was a French investment bank based in Paris that in May 2000 merged with Banque Nationale de Paris S.A. to form BNP Paribas. Les Pays-Bas ("The Low-Countries") is French for the Netherlands. (Image: Reuters)

France's BNP Paribas has closed its wealth management business in India, the bank said on June 16. BNP Paribas said the decision to close the unit, which has $14.5 billion of assets under management, was unrelated to the COVID-19 pandemic and consequent economic fallout.

"BNP Paribas Wealth Management has decided to exit its onshore wealth management business in India in order to focus on areas where its global footprint and diversified business strengths allow it to provide clients with more value-added services," a BNP Paribas spokesperson said, as quoted by The Economic Times.

"This decision is unrelated to the current pandemic and has no impact on our continued wealth management growth strategy in Asia, which remains an important growth engine for our global franchise," the spokesperson added.

There are about 60 people working for the business in India and they have been given the option to either relocate to other businesses like its brokerage subsidiary Sharekhan, or join its offices in Hong Kong or Singapore, officials told PTI.

"We can confirm that a number of roles will be affected. As we are currently looking for redeployment opportunities within the Group, it would be inappropriate to comment further," a spokesperson told PTI.

Without specifying the number of clients the arm currently serves, the spokesperson said wealth management clients will be referred when appropriate to Sharekhan in the future.

The bank, which has been in India for the last 160 years, continues to be focused on growing its operations in India and has invested over 800 million euros in the country since 2012, the spokesperson said, adding that it employs a total of 13,000 people in India.

It is setting up an asset management joint venture with Bank of Baroda to distribute mutual funds in India and abroad.

Sharekhan is also foraying into the discount brokering category via a new subsidiary company.