Credit Suisse launches India wealth management

MUMBAI (Reuters) - Credit Suisse launched on Thursday its wealth management business in India, where a robust economy has boosted incomes and attracted players such as Citigroup, Morgan Stanley and Merrill Lynch.

The Swiss investment bank aims to target individuals and family owned businesses that had a net worth of at least $3 million, India country head Mihir Doshi said.

India had 100,000 millionaires in 2006, up 21 percent from a year earlier, according to a Merrill Lynch/Capgemini report and Credit Suisse estimated 50,000 Indians would have assets of more than $10 million by 2010.

Credit Suisse, which has investment banking and securities operations in India, plans to offer advisory services for domestic equity and debt initially and will have 40 wealth management staff by the end of 2008, Doshi said.

It will be competing with local players such as JM Financial (JMSH.BO: Quote, Profile, Research) and Kotak Mahindra Bank.

India's benchmark share index has fallen nearly 17 percent this year, following a global equities rout caused by the U.S. subprime crisis.

Analysts are, however, bullish on the long-term outlook for Indian stocks which had been on a five-year bull run through 2007.

India's economy, Asia's third-largest, is expected to post a slower growth of about 8 percent this year after averaging 8.8 percent in the previous four years.

U.S. and European investment banks are expanding in Asia lured by the region's economic growth that is well above their home markets.