StanChart, which earns most of its revenue in Asia, Africa and the Middle East, had about 640,000 credit cards in India as of March, according to the latest regulatory data.
The lender is selling a part of its India portfolio, where customers only hold credit cards and don’t have a wider banking relationship, Reuters reported in March. StanChart had been reviewing offers from Federal Bank and peer .
The deal with the Kerala-based Federal Bank is expected to close by the end of 2026. The deal value would depend on consent from customers and the balances at the time of transfer, Federal Bank said in a statement, adding that the portfolio is being valued at around 1.5 to 1.6 times implied equity.
“This decision is in line with our strategic shift towards building deeper, multi-product relationships with our clients,” Aditya Mandloi, Standard Chartered’s head of wealth and retail banking in India and South Asia, said.
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The bank, which on Thursday posted a better-than-expected 17% profit gain, has been selling non-core businesses in India.
Last year, Standard Chartered sold its India personal loan business, valued at $488 million at the time, to Kotak Mahindra Bank.
For Federal Bank, the acquisition represents “a compelling and strategic addition” to its retail credit franchise, chief executive KVS Manian said. The Indian lender has over 2 million credit card customers.
Shares of Standard Chartered UK-listed shares were trading up 0.3% while Federal Bank shares were up 0.7% as on 0950 GMT.
India has 118 million outstanding credit cards with the likes of , and among the prominent issuers.
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