MUMBAI: Federal Bank has decided to go it alone in the wealth management business that used to be run in association with Equirus Capital for the past seven years. The business will now be run by the bank itself through its Gift City unit.
Federal Bank entered the wealth management space seven years ago through an arrangement with Equirus Capital. The bank will continue to own an 8.69% stake in Equirus, which is primarily into equity broking.
Under the new arrangement, the business will be led by Virendra Somwanshi and will offer a curated suite of investment solutions such as fixed income, equities, mutual funds, and alternatives, the Kochi-headquartered bank said in a statement Saturday.
“The existing arrangement between Federal Bank and Equirus for wealth management services will be restructured but customers who currently avail wealth management services through the existing arrangement with Equirus will continue to do so without disruption under the current framework," the statement said.
The bank and Equirus will continue to collaborate to fulfill the investment needs of ultra high net worth individual customers by offering select products and services from the Equirus wealth management suite, the statement said.
The largest private sector lender from Kerala has also opened its first ‘wealth hub’ which will be opened in more key locations to provide clients with a private, premium environment to engage with relationship managers and portfolio counsellors, review investment strategies, and access research insights across asset classes through both in-person and virtual consultations.
"The partnership with Equirus 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," said Federal Bank chief executive KVS Manian.
Ajay Garg, Equirus managing director, said, "As envisaged in the partnership, we had entered into the wealth management business seven years ago and have been able to establish ourselves as one of the top 10 players in the segment with presence across 23 cities."
Federal Bank is the fifth largest private sector bank, with a legacy spanning more than nine decades. As of December 2025, its total business stood at Rs 5.53 trillion. The bank has a nationwide presence of over 1,600 branches. It has representative offices in Dubai and Abu Dhabi and an IFSC banking unit at Gift City.
Equirus specializes in investment banking, institutional securities, wealth and asset management, HNI broking, NBFC, and insurance solutions.