Federal Bank and Standard Chartered Bank India have entered into an agreement under which Federal Bank will acquire a select credit card portfolio from Standard Chartered Bank, India. 

The proposed transaction, once completed, is expected to strengthen Federal Bank’s credit card business, expand its customer base and significantly deepen its presence in Tier-1 cities through access to a high-quality and seasoned customer portfolio. 

The acquisition is also expected to accelerate Federal Bank’s retail relationship strategy, particularly in the non-co-branded credit card segment. 

For Standard Chartered Bank, the move aligns with its previously announced strategy to sharpen focus on the wealth and affluent segment in India, while moving away from predominantly single-product relationships covered under this transaction. 

The portfolio proposed to be acquired comprises up to 4.5 lakh credit cards, compared with Federal Bank’s existing base of 8 lakh non-co-branded cards and 13 lakh co-branded cards. 

Non-co-branded credit card receivables are likely to rise by 90%: Federal Bank

Federal Bank said its non-co-branded credit card receivables are expected to rise by nearly 90% following the transaction. However, the final portfolio size, including the number of cards transferred, will depend on the timing of the transfer and customer consent. 

The bank said the portfolio has been valued at 1.5 to 1.6 times implied equity, with the final consideration linked to actual balances at the time of transfer. 

Geographically, around 75% of the acquired card base is concentrated in India’s top eight cities, which is expected to more than double Federal Bank’s presence in these markets. 

This is likely to significantly enhance Federal Bank’s footprint in Tier-1 cities and expand access to urban, financially active consumers. 

KVS Manian, MD & CEO of Federal Bank, said, "This acquisition represents a compelling and strategic addition to our retail credit franchise. The portfolio we are acquiring is of good quality, highly seasoned active credit card users, and is concentrated in the markets that align with our strategy. This further accelerates the growth of our already fast-growing cards business. We see this as a significant opportunity to serve these discerning customers better and build long-term relationships that make us their preferred banking partner." 

Virat Sunil Diwanji, National Head of Consumer Banking at Federal Bank, said, “We look forward to warmly welcoming Standard Chartered customers to the Federal Bank platform and engaging with them. We are committed to ensuring a seamless and uninterrupted transition, while giving customers access to Federal Bank’s full suite of products and services as we strive to build deeper and more enduring relationships.” 

Aditya Mandloi, MD & Head Wealth & Retail Banking, India & South Asia, Standard Chartered Bank, said, “This decision is in line with our strategic shift towards building deeper, multi-product relationships with our clients. Credit Cards continue to be a core part of our offering, complemented by our ongoing investments in strengthening our wealth platform and enhancing our proposition for our Affluent Clients, including the recent launch of our Metal Beyond Credit Card. India remains a key market for Standard Chartered, where we continue to invest and strengthen our presence while serving our clients seamlessly. We will work closely with Federal Bank to ensure a smooth transition for our clients.” 

The proposed transaction does not require regulatory approvals and is expected to be completed within calendar year 2026. Further details will be disclosed in line with applicable regulatory requirements.