Indian bankers to get higher pay rise than Singapore and Hong Kong

Investment bankers can already earn more in major urban centers in India.

Financial professionals in India will receive larger pay rises this year than those in Hong Kong and Singapore, Bloomberg reported, underscoring how companies are taking advantage of the country’s economic boom amid China’s economic slowdown.

Wages in India could rise by 10% in 2024, analyst Sarah Jane Mahmud wrote in a note on Friday, citing survey data from consulting firm Aon. This compares with 4% in the two financial centres.

HSBC Holdings Plc and Julius Baer Group Ltd. are stepping up their client advisory in the world’s most populous country as it seeks to manage a greater share of the country’s wealth. Mitsubishi UFJ Financial Group Inc. is also expanding and DBS Group Holdings Ltd. continues to grow, analysts wrote.

Investment bankers already earn more in major Indian urban centers such as Mumbai and India’s free-market zone GIFT City than in Singapore and Hong Kong. Average base salaries are 4.5% higher than in Hong Kong and 7.7% higher than in Singapore, according to a Bloomberg Intelligence analysis of a survey of recruiter Michael Page. However, private bankers are paid 50% to 78% less than non-executive positions. As India’s wealth industry grows, this gap will narrow.

Amit Agarwal, managing partner at executive search firm Stanton Chase, said: “Salaries will continue to rise given the huge gap between supply and demand for senior roles, as well as those in compliance, risk assessment and technology. It will continue to rise.” Banks are paying corporate leaders more, he said, and it’s common for senior leaders to earn more than $1 million.

While India has higher income tax rates than Singapore and Hong Kong and weaker infrastructure, the lower cost of living is a benefit, the report said. The average monthly rent in upscale Bandra in Mumbai is $1.76 per square foot, compared with $5.29 in Hong Kong and $5.09 in Singapore, the report found, according to government statistics.

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