Banks see profits in India's millionaires club

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The banks are encountering younger, more sophisticated clients with a higher risk appetite than their western peers, but who may be slow to warm up to professional wealth advisers.

"Many of them have a fixed notion of what their portfolios should look like," said Bhasin at Axis, which has tied up with Banque Privee Edmond de Rothschild Europe to also service overseas Indians holding about $1 trillion of investable assets.

"It takes a while to convince them we are on the same side of the table, that they need not take on so much risk," she said.

The newly wealthy are open to more risk and seek options such as hedge funds, private equity and real estate.

"The level of sophistication continues to rise, as does the level of money being made by younger entrepreneurs," said Peter Hu, head of investor solutions, Barclays Capital, Asia ex-Japan.

"Generally speaking, risk appetite is higher, since much of the wealth in places like India and China has been created by the current generation, and they tend to make their own decisions and are open to less traditional products," he said from Singapore.

Wealthy Indian investors, who in the past bought gold, are also signing up for wine-tasting sessions hosted by private banks, and checking out contemporary art and swish yachts.

"More investors are keen to put at least some part of their assets in art, and are looking to their banks to help them do that," said Dinesh Vazirani, director of Saffronart, which sells art and offers advice on investing in it.

"We are also seeing a younger profile of investors, 25-40 years, that is keen on art as an asset," he said.

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