Indian Funds in Swiss Banks Drop 8% to ₹36,793 Crore in 2025
The latest data from the Swiss National Bank (SNB) reveals a complex shift in Indian-linked assets held in Switzerland, showing a significant decline in overall holdings despite a massive surge in direct customer deposits. While the total quantum of funds has dipped, the underlying trends suggest a structural change in how Indian wealth is being managed across Swiss financial institutions.
Total Assets Decline Amid Institutional Pullback
According to the annual report released by the SNB, total funds linked to Indian clients in Swiss banks fell by more than 8% in 2025, settling at 3.25 billion Swiss francs (approximately ₹36,793 crore). This follows a sharp rebound in 2024, when funds had surged threefold to 3.5 billion Swiss francs.
The primary driver for this contraction was a substantial reduction in funds held through banks and other financial institutions. These institutional holdings, which constitute the bulk of Indian-linked assets, dropped by nearly 15% to reach 2.6 billion Swiss francs. Additionally, assets held through fiduciaries and trusts saw a massive 55% plunge to 18.6 million Swiss francs, while other liabilities, including bonds and securities, also declined to 105.7 million Swiss francs.
Direct Customer Deposits See 50% Surge
In a striking contrast to the institutional decline, money held directly in customer accounts witnessed a dramatic spike. Funds belonging to individual and institutional clients rose by more than 50% during the year, reaching 524 million Swiss francs (around ₹6,000 crore).
While this growth is significant, direct deposits currently represent only about 16% of the total Indian-linked assets in Switzerland. Interestingly, separate data from the Bank for International Settlements (BIS)—often considered a more accurate gauge of deposits held by Indian individuals—showed a 20% rise to USD 89.73 million (about ₹780 crore), signaling a consistent recovery in individual holdings over the last two years.
Global Context and Regulatory Transparency
On a global scale, total funds belonging to all foreign clients in Swiss banks declined by nearly 8% to 1.05 trillion Swiss francs. The United Kingdom remains the largest holder of funds at 192 billion Swiss francs, followed by the US and France. Notably, India improved its global ranking, moving up to 46th place from 48th the previous year.
In the South Asian context, the data showed a divergence: while Pakistan's funds declined to 257 million Swiss francs, Bangladesh saw a sharp 43% increase to 842 million Swiss francs.
The SNB has reiterated that these figures should not be interpreted as a measure of "black money." Since 2018, Switzerland and India have operated under a tax transparency framework, involving the automatic exchange of financial account information. The current data excludes assets held through entities incorporated in third countries, meaning the figures represent the total liabilities of Swiss banks toward Indian clients, including companies and banks.
Key Takeaways
- Overall Decline: Total Indian-linked funds in Swiss banks dropped 8% to ₹36,793 crore, driven largely by a 15% decrease in institutional holdings.
- Individual Growth: Direct customer deposits experienced a massive 50% surge, reaching 524 million Swiss francs, indicating a shift toward direct wealth management.
- Transparency Measures: The figures reflect total bank liabilities and do not equate to illicit wealth, especially given the ongoing automatic exchange of financial information between India and Switzerland.