Master at managing millionaires? HDFC Bank has a job for you

HDFC Bank is reportedly in pursuit of skilled managers to oversee an expanding base of wealthy clients amid intensifying competition for top talent. 

India’s rapidly growing economy is producing an increasing number of ultra-wealthy individuals, with those holding $30 million in assets expected to grow by 50% between 2023 and 2028, according to a Knight Frank wealth report.

This surge has prompted private sector banks to ramp up their efforts to capture market share, further intensifying the competition for skilled wealth managers.

With a reported assets under management totaling Rs 6.47 trillion ($77.2 billion), HDFC Bank has been expanding its wealth management team by 10% to 20% annually, recruiting talent both internally and externally.

The bank currently employs around 800 relationship managers serving clients in approximately 100 cities across India, including smaller markets such as Jorhat in Assam and Salem in Tamil Nadu. 

The bank, according to a Bloomberg report, has found it challenging to find individuals in smaller markets who can effectively connect with high-net-worth clients.  "Our experience shows that we don’t find people who can relate to a high-net-worth client within the same market," Rakesh K. Singh, who heads HDFC Bank’s investment, private wealth, and international banking divisions was quoted as saying in the report.

"It's crucial for a person to be able to build trust with an HNI."

Singh, in the report, acknowledged that the scarcity of skilled talent in smaller towns could hinder the bank's expansion efforts in those areas.

Some relationship managers are being enticed by salary increases of 40% to 50% offered by rival firms, Singh told the agency. The bank fears as more wealth management units raise compensation to attract these highly sought-after managers, the financial viability of these ventures could be jeopardized. BT could not independently verify the report.

Despite these challenges, HDFC Bank remains committed to sustainable growth. The bank’s recent annual report highlights its focus on strengthening both its physical and digital infrastructure, even as near-term growth faces constraints due to credit-deposit ratio challenges. The bank’s Retail, Commercial, and Rural Banking portfolio has shown healthy growth, helping to address priority sector lending shortfalls.

According to a research report by Motilal Oswal, HDFC Bank is projected to deliver a return on assets (RoA) of 1.86% and a return on equity (RoE) of 14.9% by FY26. The report maintains a "BUY" rating on HDFC Bank’s stock, with a target price of INR 1,850, based on 2.3 times FY26 estimated adjusted book value and INR 256 for its subsidiaries.