Federal Bank to acquire 4.5 lakh Standard Chartered card portfolio

Mumbai: will acquire a select India credit card portfolio from Standard Chartered Bank of about 450,000 cards, the bank said in a statement. Both banks will sign an agreement for the deal, the bank said in a statement without giving a timeline for the deal.

The portfolio acquisition will enhance Federal Bank’s existing base of 800,000 non-co-branded cards and 1.3 million co-branded cards, increasing the bank’s receivables by about 90%. The total outstanding book of the portfolio is worth about ₹1,500 crore, people familiar with the deal told ET.

Also Read:

“The final portfolio, including the number of cards acquired, will depend on the timing of the final transfer and customer consent. The transaction values the portfolio at 1.5 to 1.6 times implied equity as estimated by Federal Bank. The final consideration will be linked to actual balances at the time of transfer,” Federal Bank said in a statement.

Bank CEO KVS Manian said the portfolio being acquired is of good quality, highly seasoned active credit card users, and is concentrated in the markets that align with Federal Bank’s 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,” Manian said.

Geographically, about 75% of the acquired card base concentrated in India’s top eight cities, leading to Federal Bank’s presence more than doubling in these locations.

Also Read:

In March ET had reported had pipped Federal Bank to acquire the India retail business of Deutsche Bank in a deal valued at about ₹4,500 crore after being selected as the preferred buyer. The deal is not announced yet.

The StanChart deal, upon completion, will expand Federal Bank’s credit card base and significantly deepen its presence in Tier-1 cities with a high-quality, seasoned customer base, the bank said. The proposed transaction does not require regulatory approvals and is expected to close within calendar year 2026, Federal Bank said.