Indian Funds in Swiss Banks Fall 8% to ₹36,793 Crore in 2025
Recent data from the Swiss National Bank (SNB) reveals a complex shift in how Indian capital is parked in Switzerland, characterized by a decline in institutional holdings alongside a massive surge in direct customer deposits. While the total volume of Indian-linked assets has dipped, the changing composition of these funds suggests a pivot toward individual and institutional client accounts.
Overall Decline Driven by Institutional Shifts
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 significant rebound in 2024, when funds had surged threefold to 3.5 billion Swiss francs.
The primary driver behind this recent contraction is a steep decline in funds held through banks and other financial institutions. These assets, which make up the bulk of Indian-linked holdings, dropped by nearly 15% to approximately 2.6 billion Swiss francs. Other categories also saw significant pullbacks: assets held through fiduciaries and trusts plummeted by 55% to 18.6 million Swiss francs, while other liabilities, including bonds and securities, declined to 105.7 million Swiss francs.
Direct Customer Deposits Surge by 50%
Despite the downward trend in total assets, there is a notable rise in direct engagement from individual and institutional clients. Deposits held directly in customer accounts climbed by more than 50% during the year, reaching 524 million Swiss francs (around ₹6,000 crore).
While this represents a massive growth in direct holdings, these accounts currently account for only about 16% of the total Indian-linked assets in Swiss banks. Separately, data from the Bank for International Settlements (BIS)—often considered a more precise indicator for individual deposits—showed a 20% rise in such deposits to USD 89.73 million (roughly ₹780 crore) in 2025.
Contextualizing the Data and Global Rankings
It is critical to note that the SNB emphasizes these figures represent total liabilities of Swiss banks toward Indian clients, including companies and banks, and should not be viewed solely as a measure of "black money." Since 2018, Switzerland and India have participated in an automatic exchange of financial account information to ensure tax transparency.
In the broader global landscape, India improved its standing among foreign clients, moving up to 46th place from 48th the previous year. For comparison, the United Kingdom remains the largest holder of funds in Swiss banks with 192 billion Swiss francs. Within South Asia, while Pakistan saw a decline to 257 million Swiss francs, Bangladesh recorded a sharp 43% increase, reaching 842 million Swiss francs.
Key Takeaways
- Total Assets Down: Indian-linked funds in Swiss banks decreased by over 8% to ₹36,793 crore, primarily due to a 15% drop in institutional holdings.
- Direct Deposits Up: Individual and institutional customer deposits witnessed a massive 50% surge, reaching approximately ₹6,000 crore.
- Transparency Framework: The data reflects total liabilities and is subject to the ongoing automatic tax information exchange between India and Switzerland established in 2018.