It’s not easy being a private banker in India, the Reuters reveals. The problem is that there are not enough fee-generating services for private bankers to provide because most Ultra High Net Worth Indians are better off reinvesting in their own businesses for the best return. Those who want to take a little off the table opt for doomsday plays like gold and real estate, not wine or art, Sumeet Chatterjee of Reuters says.

In 2010, the number of people with more than $1 million in investable assets rose nearly 21 percent in India, to 153,000, according to a report by Capgemini and Merrill Lynch. India may be minting millionaires, but that is failing to produce profits for the banks that have set up teams of well-dressed, well-paid bankers to help manage those riches. […] Many rich mainland Chinese invest in real estate or stash their wealth in Hong Kong or Singapore, which are thriving private banking centers.

Many of the richest Indians also have substantial wealth overseas and do their private banking in Singapore, Zurich, London or Dubai, where there are more investment options and where some banks cater specifically to nonresident Indians. A large chunk of Indian wealth goes undeclared. The tax authorities say billions of dollars have been deposited by Indians in Swiss bank accounts and other tax havens.

Bank’s Allure is Thin for Wealthy Indians (Reuters/New York Times)