Sources familiar with the matter were quoted by Reuters as saying that Standard Chartered will purchase roughly 70% of the book, and pay approximately $5m or less for the business, while the transaction is expected to close within six months.
The sale is likely to help the UK-based bank to expand its private banking business in Asia, while the US bank intends to concentrate on institutional securities, investment banking and asset management in India.
Accounting for less than 5% of its total India income in 2012, Morgan’s wealth management unit has assets under management of around $800m, as reported by the news agency.
Set up four years ago, the US bank began its wealth-management operations by offering investment-advisory services in equities, fixed income and private equity.
Morgan Stanley sold its European wealth-management business to Credit Suisse last month.
Launched in 2007, Standard Chartered’s Indian wealth management unit manages about $3bn worth of assets in its private banking business, while the group also offers retail-banking services.
In 2011, India’s number of millionaires declined by 18% to 125,500 since 2008, according to Capgemini and RBC Wealth Management’s world wealth report.
