Federal Bank advanced over 4 per cent in morning trade on Friday after the private lender on Thursday made its foray into investment banking by acquiring a minority 26 per cent stake in Equirus Capital.
The scrip was trading 4.23 per cent up at Rs 93.70 on the BSE at around 10 am (IST), which opened at Rs 93.50 before hitting high and low of Rs 94.15 and Rs 92.50, respectively. Benchmark BSE Sensex rose 135 points, or 0.40 per cent, to 33,955.
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 products.
"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 in a release.
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.
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