Federal Bank said its existing arrangement with Equirus Capital Private Ltd for wealth management services will be “restructured”.

The Bank intends to invest more and create its own franchise in the wealth management business as part of the next phase of growth.

As part of this strategic expansion, and to align with the Bank’s evolving product and service architecture for affluent and UHNI (ultra high networth individual) clients, the existing arrangement between Federal Bank and Equirus Capital Private Ltd for wealth management services will be restructured, the Bank said in a statement.

Customers who currently avail wealth management services through the existing arrangement with Equirus will continue to do so without disruption under the current framework.

Federal Bank, which launched its wealth management platform and its first Wealth Hub, said it continues to hold 8.69 per cent stake in Equirus.

The Bank and Equirus will continue to collaborate to fulfil the investment needs of UHNI category customers by offering select products and services from the Equirus wealth management suite, per the statement.

The Bank’s wealth management business will be led by Virendra Somwanshi, who brings extensive experience in building and scaling wealth management franchises within the banking sector, it added.

K V S Manian, MD & CEO, Federal Bank, said, “The Equirus partnership enabled the Bank to establish a strong foundation in the wealth management business. In the next phase of growth, we would like to invest more and create our own franchise in this space. We value our association with Equirus and look forward to continued collaboration in areas of mutual strength”

Mr. Ajay Garg, MD Equirus Capital, said, “As envisaged in the partnership, we had entered into the wealth management business 7 years ago and have been able to establish ourselves as one of the top 10 players in the wealth management business with presence across 23 cities. Federal Bank has been a valued partner and we are keen to support their desire to broaden their wealth presence and working closely with them on technology andbusiness build out to facilitate the same.”