Indian Funds in Swiss Banks Drop to ₹36,793 Crore Despite Surge in Direct Deposits
Recent data from the Swiss National Bank (SNB) reveals a complex shift in how Indian capital is positioned within Swiss financial institutions. While the total volume of funds linked to Indian clients saw an 8% decline in 2025, a significant surge in direct customer deposits suggests a changing trend in how high-net-worth individuals and institutions manage their offshore wealth.
The Overall Decline: Driven by Institutional Outflows
According to the annual report released by the SNB, total funds linked to Indian clients fell to 3.25 billion Swiss francs (approximately ₹36,793 crore) in 2025. This represents a decline of over 8% from the previous year, following a massive threefold rebound in 2024 when funds reached 3.5 billion Swiss francs.
The primary driver for this contraction was the sharp reduction in funds held through banks and other financial institutions. These institutional assets stood at 2.6 billion Swiss francs at the end of 2025, marking a nearly 15% decrease. Additionally, assets held through fiduciaries and trusts plummeted by 55% to 18.6 million Swiss francs, while other liabilities such as bonds and securities also saw a decline to 105.7 million Swiss francs.
The Silver Lining: 50% Growth in Direct Customer Deposits
Despite the broader downward trend, there is a notable shift toward direct ownership. Funds held directly in customer accounts—belonging to individual and institutional clients—surged by more than 50% during the year. These direct deposits reached 524 million Swiss francs (roughly ₹6,000 crore).
While these direct deposits represent only about 16% of the total Indian-linked assets in Switzerland, the growth rate indicates a move away from routed institutional holdings toward more direct banking relationships. Furthermore, separate data from the Bank for International Settlements (BIS) supports this recovery, showing that deposits held by Indian individuals rose by 20% in 2025 to USD 89.73 million (approximately ₹780 crore).
Global Context and Transparency Frameworks
On a global scale, total foreign funds in Swiss banks declined by nearly 8% to 1.05 trillion Swiss francs. In terms of regional standing, India improved its global ranking, moving up to 46th place from 48th the previous year. In contrast, South Asian neighbor Bangladesh saw a sharp 43% increase in its holdings, reaching 842 million Swiss francs, while Pakistan's funds declined to 257 million Swiss francs.
It is critical to note the Swiss National Bank’s clarification that these figures do not serve as a direct measure of "black money." The data includes all liabilities to Indian clients, including companies and banks, and excludes assets held through entities in third countries. Since 2018, Switzerland and India have maintained a tax transparency framework, ensuring the automatic exchange of financial account information to prevent illicit wealth accumulation.
Key Takeaways
- Total Decline vs. Direct Growth: While total Indian-linked funds in Swiss banks dropped by 8% to ₹36,793 crore, direct customer deposits saw a massive 50% increase.
- Institutional Outflows: The overall decline was largely fueled by a 15% drop in funds held through financial institutions and a 55% crash in fiduciary and trust assets.
- Improved Global Standing: India climbed to the 46th position globally for funds held in Swiss banks, even as total foreign assets in Switzerland saw a broad decline.