India’s Federal Bank has agreed to buy a minority stake of 26% in investment banking firm Equirus Capital (ECPL) for an undisclosed sum.

The transaction will enable the bank to deliver a wide range of products including wealth management services to high net worth individuals (HNIs) and the non-resident Indians (NRIs).

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Additionally, the deal is also expected to boost the bank’s non-interest earnings while providing additional revenue streams with identified clients.

Commenting on the deal, Federal Bank executive director Ganesh Sankaran said: “This is a landmark deal that demonstrates the bank’s wider intent to expand the horizon of its offerings to serve its wholesale and retail customer base.

“This partnership will serve as a natural complement to our strong origination capabilities and deep client relationships in addition to positioning us as a Universal Financial Services Provider. With a shift in client preferences, our foray into Investment Banking will help us participate in opportunities and instruments beyond traditional banking products.”

Equirus Capital managing director Ajay Garg said: “Investment by Federal Bank is a strong endorsement of our team’s entrepreneurial venture now on the path to becoming an institution.

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“With this relationship, we intend to expand our product offerings in debt, and leverage on Federal Bank’s extensive network and client base to enhance each of our business lines.”

The transaction is pending receipt of statutory and regulatory approvals besides completion of financial and legal due diligence.