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Godrej Wealth plans to enter the asset management market next year
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Business Standard
business-standard.com

Godrej Wealth plans to enter the asset management market next year

Godrej Wealth is intensifying its expansion and intends to commence operations in the Asset Management Company (AMC) sector within the next year, aiming to broaden its range of services and establish a wider platform for capital and investment management.

Manish Shah, CFO and CEO of Godrej Capital, announced on Thursday that the company is in the process of applying for a mutual fund license and expects to enter this market in approximately one year.

As Shah noted, they are working towards obtaining the mutual fund license, and there is still one year until that event.

Both Godrej Wealth and Godrej Capital are part of the Godrej Industries Group. Godrej Wealth, as a wealth management division of the group, already holds a Portfolio Management Services (PMS) license and has a Category II Alternative Investment Fund (AIF). Furthermore, Shah mentioned that the company is preparing to launch its first private credit fund.

The proposed mutual fund business will complement the company's existing open wealth management platform, which provides High Net Worth Individuals (HNWI) with access to mutual funds, PMS, AIF, private lending, and bespoke portfolio management solutions.

Shah stated that the company's goal is to build a comprehensive wealth and asset management offering over the coming year.

Godrej Wealth officially launched its operations in Mumbai in June 2026, and it opened in Delhi on Thursday. Further expansion is planned into six additional cities: Pune, Hyderabad, and Bangalore in the current quarter, and Chennai, Ahmedabad, and Kolkata in the next quarter.

The company has set a target to achieve Assets Under Management (AUM) of ₹3,000 crore by the end of the current fiscal year, and aims to reach ₹1 lakh crore in its wealth and asset management verticals by 2031.

The company's primary focus is on the HNWI and UHNWI segments, as demand for wealth management services in the country is growing due to increased entrepreneurship, greater participation in financial markets, and intergenerational wealth transfer.

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PNB plans to launch wealth management services and expand credit card portfolio
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business-standard.com

PNB plans to launch wealth management services and expand credit card portfolio

The public sector lender Punjab National Bank (PNB) intends to enter the highly competitive wealth management segment and strengthen its credit card portfolio, as these areas remain largely untapped by most public sector banks.

Ashok Chandra, Managing Director and CEO, told Business Standard that PNB plans to commence operations in wealth management in early 2027.

To implement this vertical, PNB has deployed client relationship managers across 1700 branches, with another 1300 branches scheduled to receive such managers by the end of September. With over 10,000 branches nationwide, PNB will offer wealth management services to the top 250 clients in each of these branches. Furthermore, the bank has launched a training program for client relationship managers to enable them to provide effective services in this domain.

The wealth management segment in India, despite competition from traditional banks and other financial sector players such as brokerage houses and mutual funds, holds significant potential due to rapid financial development and the growing number of High Net Worth Individuals (HNWIs). The wealth management market, valued at $172 billion in 2025, is projected to reach $436 billion by 2034, corresponding to a compound annual growth rate exceeding 10 percent between 2026 and 2034. A recent BCG report indicates that 10 percent of global financial asset growth by 2030 will come from emerging markets, led by India, Brazil, and Mexico.

Another segment actively being developed by PNB is the credit card issuance business, which the bank started in 2009. Ashok Chandra noted that credit cards represent a large market in India, but public sector banks play a relatively passive role, with the exception of SBI, which operates through its subsidiary, SBI Card.

After establishing a digital foundation for the credit card business last year, the bank constituted a specialized department headed by a General Manager. He reported that the number of credit cards reached 6.5 lakh by March 2025, and this figure grew to 10.5 lakh in one year, with an addition of 50,000 to 60,000 new cards monthly.

PNB issued the 'Luxura' metal card on the RuPay platform with a maximum credit limit of 50 lakh rupees. An annual fee is charged if annual spending on the card exceeds 8 lakh rupees from the date of issue. Last month, the Indian Army and PNB signed a Memorandum of Understanding (MoU) to provide tailor-made credit cards to military personnel of all ranks of the Indian Army. Under this agreement, PNB will offer the Luxura card to officers and the 'Parakram' card to junior commissioned officers and other staff, utilizing the RuPay/Visa platforms.

Ashok Chandra added that significant growth is expected from the collaboration with the Army, and that within the next two to three years, PNB is set to become a dominant player in the credit card business. The credit card market in India is controlled by private banks; the country's largest private lender, HDFC Bank, commands 22 percent of the market, holding nearly 27 million cards as of the end of July. SBI Card had 22.8 million credit cards, and ICICI Bank had 19.7 million. The total number of outstanding credit cards at the end of July was 122.9 million.

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