Mumbai, Feb 22 (PTI) Private sector lender Federal Bank today made its foray into investment banking by acquiring a minority 26 per cent stake in Equirus Capital, a boutique investment bank.
Ganesh Sankaran, executive director, Federal Bank, said with a shift in client preferences, the bank’s foray into investment banking will help it participate in opportunities and instruments beyond traditional banking products.
It would widen the product offerings to a spectrum of wholesale clients by offering comprehensive financial solutions for debt and equity capital markets, structured finance, capital market products and advisory, according to a release issued today.
The association can also aid bank in offering a host of products including wealth management services to high networth individual (HNI) and the NRI diaspora.
“With our dominant position in the NR (non-resident) space and a strong customer base of over seven million, this will also help us provide superior wealth management offerings to our consumer bank clients,” Sankaran said.
The tie-up would help shore up non interest earnings for the bank while creating additional revenue streams with identified clients.
The board of directors of Federal Bank has approved acquiring a strategic minority stake of 26 per cent in Equirus Capital (ECPL) subject to statutory and regulatory approvals and satisfactory completion of financial and legal due diligence, the release said.
Federal Bank presently has around 1,250 branches and 1,679 ATMs across the country.
This is published unedited from the PTI feed.