Credit crunch hurts India's wealthiest, too

By Rina Chandran

MUMBAI (Reuters) - These are painful times for India's tycoons, the Forbes Asia Rich List said recently.

A falling stock market, a weak rupee and slowing economic growth have shaved about 60 percent off the wealth of India's 40 richest people, it said in its annual compilation, with their net worth plunging to $139 billion from $351 billion a year ago.

No small change that, and it's got to hurt.

"They're definitely feeling the pain," said Sonu Bhasin, president of retail finance at Axis Bank, and head of the bank's private banking and wealth management divisions, which have nevertheless continued to add new clients in recent months.

"Everyone's hurting, everyone's in a panic, but the wealthy get noticed more and their concerns get addressed," she said.

An economy that grew at about 9 percent in the last three years and a six-year bull run on the stock market helped mint new millionaires in Asia's third-largest economy, a rich class who splashed out on luxury cars, yachts and sprawling vacation homes.

India had 123,000 millionaires in 2007 and showed the fastest pace of expansion, a Merrill Lynch/Capgemini report said.

But a stock market rout has meant local investors have "notionally lost almost a year's GDP", Credit Suisse said.