Federal Bank to acquire StanC India credit card portfolio

will acquire a select credit card portfolio from UK based Standard Chartered Bank, India of about 4.5 lakh credits 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 enchance Federal Bank’s existing base of 8 lakh non-co-branded cards and 13 lakh co-branded cards, increasing the bank’s non-co-branded credit cards receivables by an about 90%. The total outstanding book of the portfolio is worth about Rs 1500 crore, sources told ET.

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“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. “This materially enhances Federal Bank’s footprint in Tier-1 markets, substantially expanding its access to urban, financially active consumers, and reinforces its strategic priority of building deeper relationships in high-value urban segments.

The transaction, 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, the bank said.

For Standard Chartered, this announcement accelerates its previously announced strategy to consolidate and sharpen its focus in the wealth and affluent segment in India, and away from predominantly single-product relationships which are represented in this transaction.

“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,” said Aditya Mandloi, head wealth & retail banking, Standard Chartered Bank, India & South Asia.