Standard Chartered Plc has been in negotiation to purchase the Indian private wealth management of Morgan Stanley, according to two sources close to the matter.

The wealth management business unit, which currently manages about $1 billion that includes loans, has been courted by a number of Indian financial services firms, among of which is Standard Chartered is included.

Standard Charted is also one of the largest managers in India based on assets under management, and has a strong presence when it comes to corporate and retail banking in the third-largest economy in Asia.

The sale of the private management unit highlights the growing trend of consolidation in the wealth management industry as private banks suffer from earning profits amidst the increasing regulatory cost and decreasing advisory fees.

Morgan Stanley initiated the sale of the Indian unit in November 2012 after it entered the market about 4 years ago.

A formal bidding process is expected to be launched, one of the sources disclosed.