Indian Funds in Swiss Banks Dip to ₹36,793 Crore Amid Rising Direct Deposits
Recent data from the Swiss National Bank (SNB) reveals a complex shift in how Indian capital is parked in Switzerland, with overall funds declining despite a massive surge in direct customer holdings. While the total volume of Indian-linked assets saw an 8% contraction in 2025, the behavior of individual and institutional depositors suggests a move toward more direct banking relationships.
The Decline in Total Indian-Linked Assets
According to the latest annual report released by the SNB, funds linked to Indian clients fell by more than 8% in 2025, settling at 3.25 billion Swiss francs (approximately ₹36,793 crore). This decline follows a significant rebound in 2024, where funds had surged threefold to 3.5 billion Swiss francs.
The downward trend was primarily driven by a reduction in funds held through intermediary banks and financial institutions, which constitute the bulk of the assets. These institutional holdings dropped by nearly 15% to approximately 2.6 billion Swiss francs. Furthermore, assets held through fiduciaries and trusts saw a steep decline of 55%, falling to 18.6 million Swiss francs, while other financial instruments like bonds and securities also saw a contraction.
A 50% Surge in Direct Customer Deposits
While the aggregate figure is down, there is a notable shift in the composition of these funds. Deposits held directly in customer accounts—belonging to individual and institutional clients—surged by more than 50% during the year. These direct holdings reached 524 million Swiss francs (around ₹6,000 crore), representing roughly 16% of the total Indian-linked assets in Switzerland.
This trend aligns with separate figures from the Bank for International Settlements (BIS), which often provide a more granular look at individual wealth. BIS data indicated that such deposits rose by 20% in 2025 to USD 89.73 million (about ₹780 crore), signaling a continuous recovery in personal wealth management services over the last two years.
Contextualizing the Data: Transparency and Rankings
The Swiss National Bank has clarified that these figures represent the total liabilities of Swiss banks toward Indian clients, including deposits from individuals, companies, and banks, as well as non-deposit liabilities. Crucially, the SNB emphasized that these numbers should not be interpreted as a measure of "black money." Since 2018, Switzerland and India have engaged in the automatic exchange of financial account information under a tax transparency framework.
On the global stage, India improved its standing among fund-holding nations, moving up to 46th place from 48th the previous year. In comparison, while Pakistan's funds in Swiss banks declined to 257 million Swiss francs, Bangladesh saw a sharp 43% increase, reaching 842 million Swiss francs.
Key Takeaways
- Overall Decline: Total Indian-linked funds in Swiss banks fell 8% to 3.25 billion Swiss francs (₹36,793 crore) in 2025, largely due to a drop in institutional and fiduciary holdings.
- Direct Deposit Growth: Despite the total drop, direct customer deposits saw a massive 50% increase, reaching 524 million Swiss francs (₹6,000 crore).
- Transparency Measures: The data excludes assets held through third-country entities and operates under a strict automatic tax information exchange framework between India and Switzerland.