MUMBAI/NEW DELHI (Reuters) – UBS is in talks to form an Indian wealth management joint venture with Mumbai-based 360 One WAM, two sources with direct knowledge of the matter told Reuters.

The joint venture would help the Swiss bank expand its Indian wealth business to “high net worth individuals” from its previous focus on “ultra high net worth individuals”, they said.

India’s asset management sector is driven by rapid economic growth and domestic market recovery. According to TechSci Research, it was worth $429.1 billion in 2023 and is expected to grow at a compound annual rate of 4.6% between 2025 and 2029.

Globally, UBS had $4 trillion worth of invested assets at the end of June, while 360 ​​One, formerly known as IIFL Wealth Management, has 5.21 trillion rupees ($62.28 billion).

UBS declined to comment, while 360 ​​One said it had no comment on the speculation.

UBS has held preliminary discussions with 360 One and plans to hold up to a 26% stake in the company, with a deal expected in the next few months, said the sources, who declined to be named because they were not authorized to do so , talk to them the media.

While Switzerland’s largest bank is exploring the possibility of setting up an asset joint venture in India and would be willing to acquire a majority stake, no decision has been made yet on a partner, another source said.

The bank’s Indian presence has been strengthened by integrating Credit Suisse’s local operations, which it undertook last year as part of a bailout launched by the Swiss government.

If the India joint venture plan comes to fruition, it would be the second country in the Asia-Pacific region where UBS would enter into an equity partnership with a local player.

UBS signed a deal with Sumitomo Mitsui Trust in Japan in 2019 to create a majority-owned company by the Swiss bank, expanding the services both companies can offer to their high-net-worth and ultra-high-net-worth clients.

($1 = 83.5120 Indian rupees)

(Reporting by Sarita Chaganti Singh in New Delhi and Siddhi Nayak in Mumbai; Editing by Alexander Smith)

By Siddhi Nayak and Sarita Chaganti Singh