Banker Pay Soars in India, Outpacing Gains in Hong Kong and Singapore

Salaries in India could rise by 10% in 2024, analyst Sarah Jane Mahmud wrote in a note Friday, citing Aon survey data.

Preeti Singh

19 Mar 2024, 07:42 AM IST

The headquarters of JSW Steel Ltd., in Mumbai, India, on Monday, Jan. 23, 2023. Tycoon Sajjan Jindal-controlled JSW Steel Ltd. plans to take advantage of lower rupee borrowing costs to refinance its offshore borrowings, as it pushes to increase capacity with a $6 billion capital expenditure plan. Photographer: Dhiraj Singh/Bloomberg

(Bloomberg) --

Finance professionals in India are in line for higher salary hikes than those in Hong Kong and Singapore this year, underscoring how firms are tapping the nation’s economic boom as China slows, according to Bloomberg Intelligence.

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

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

Read More: HK Bankers Earn Up to 46% More Than Their Singapore Peers

Investment bankers can already earn more in India’s major urban centers such as Mumbai and GIFT city, the nation’s free market zone, than in Singapore and Hong Kong. The average base salary is 4.5% higher than in Hong Kong and 7.7% more than in Singapore, according to Bloomberg Intelligence’s analysis of a survey by recruiter Michael Page. Private bankers’ pay, however, lags behind by 50% to 78% in non-executive roles. As India’s wealth industry grows, that gap will narrow.

“Salaries will continue to rise given the large demand-supply gap at senior levels, as will talent for compliance, risk assessment and technology,” in India, said Amit Agarwal, managing partner at search firm Stanton Chase. Banks are paying more for heads of businesses, and salaries of over $1 million are common for senior leaders, he said.

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

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