Karur Vysya Bank Ltd. and Centrum Wealth Management Ltd. agreed to partner on the establishment of a wealth management joint venture company.

The two companies signed a binding term sheet to establish the joint venture. Both will subscribe to shares to be issued by the new company.

Karur Vysya Bank will hold a 51% stake in the joint venture, Centrum Wealth Management will hold a 45% stake and the remaining 4% stake will be issued to employees of the venture.

The joint venture is subject to regulatory approvals and registrations, as well as definitive agreements by both parties.

Centrum Wealth Management is a unit of Centrum Capital Ltd.