Federal Bank acquires 450,000 Standard Chartered credit cards in strategic deal
Federal Bank has agreed to buy a select credit card portfolio from Standard Chartered Bank in India. The deal will add around 450,000 cards to its existing base of 800,000 non-co-branded and 1.3 million co-branded cards. Both banks have described the move as a strategic step in their respective growth plans. The acquired portfolio includes highly active credit card users, mostly based in India’s top eight cities. Federal Bank expects the transaction to boost its non-co-branded receivables by roughly 90%, though this depends on final balances and customer consent. The portfolio’s valuation sits at about 1.5 to 1.6 times implied equity, with the final price tied to receivables at the time of transfer.
The deal does not require regulatory approval and is set to close by the end of 2026. KVS Manian, Federal Bank’s MD & CEO, called it a 'compelling and strategic addition' to the bank’s retail credit business. Aditya Mandloi, MD & Head of Wealth & Retail Banking at Standard Chartered, explained that the sale aligns with their focus on building deeper, multi-product client relationships.
Further transaction details will be shared closer to completion. The acquisition supports Federal Bank’s aim to strengthen customer ties and expand in higher-value segments. Once finalised, the deal will significantly increase Federal Bank’s credit card portfolio. The bank will gain a large number of seasoned users, primarily in major urban centres. The transaction is expected to complete within the current calendar year.
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