Kerala-based, Federal Bank is planning to enter into wealth management business mainly to serve its NRI patrons. The Bank has asked Boston Consulting Group (BCG), its new business consultant to look into the proposal.

Federal Bank's Chairman and CEO M Venugopalan said, "We expect to firm up this plan in the next three months." He ruled out the possibility of entering into the asset management space directly. "This is not the right time to think over a foray into asset management business," he said.

The bank has around four lakh (4,00,000) NRI customers which provide a handsome business.

The bank has around four lakh (4,00,000) NRI customers which provide a handsome business.

Wealth Management is an advanced investment advisory discipline that incorporates financial planning and specialist financial services in retail banking, estate planning and taxation. These services are provided by banks, professional trust companies, and brokerages to mainly high net worth individuals (HNIs).

The Bank has also asked BGC to calculate its potential for a non-life insurance venture. It has already started its business in life insurance by selling risk covers.

"BCG will prepare a five-year business transformation road map for the bank. It will advise us on expansion and geographic spread, explore niche areas for business and overall strategy. The consultant will submit its report in the next six months," said Venugoplalan.

Commenting on Federal Bank-Catholic Syrian Bank merger, he said: "Nothing is on cards at this point in time. In general, we are open to mergers. But people should be ready for such talks. Any way, this is just not the right time."

Federal Bank has a customer base of nearly 50 lakh and the bank plan to expand its branch network in Tamil Nadu, Karnataka, Andhra Pradesh and Maharashtra. Currently the bank has over 600 branches spread across the nation.