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MUMBAI: Demand for private bankers in India has surged in recent times with the emergence of new millionaires and burgeoning pools of shrewdly invested money in growing asset classes.

This is making wealth management the most sought-after profession within the financial services sector where a top banker managing an active investment book in excess of Rs 4,000 crore can consistently earn a total annual compensation of Rs 3-4 crore. Compared to this, investment bankers see compensation fluctuating every year in line with deal income.

“The amount of wealth creation is increasing in India, leading to a greater need for people to manage it,” said Anshu Kapoor, head, EdelweissNSE 4.86 % Private Wealth Management. “As wealth is compounding at 12-14% per annum, more clients are seeking options of what to do with it.”

There are more than 2,500 established private bankers in India, with 200 of them managing over Rs 1,000 crore, according to estimates by Vito India, a leading executive search firm.

Most wealth management firms increased their headcount last year, anticipating larger business volumes in the future. IIFL added 250, Centrum Wealth added 135, while Edelweiss, Aditya BirlaNSE -0.57 % and Kotak Wealth beefed up their wealth desks by 50 each.