Federal Bank To Acquire Select Card Portfolio From StanC India

Mumbai: Private lender Federal Bank will acquire Standard Chartered Bank's portfolio of 4.5 lakh Indian credit cards. The proposed transaction is expected to close in calendar year 2026.

“The portfolio to be acquired comprises up to around 4.5 lakh credit cards, as against Federal Bank’s existing base of 8 lakh non-co-branded cards and 13 lakh co-branded cards. Upon completion, the transaction is expected to increase Federal Bank’s non-co-branded credit card receivables by nearly 90 per cent. The final portfolio size will depend on the timing of the transfer and receipt of customer consents, the Kochi-based lender in a statement.

The transaction values the portfolio at around 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.

StanChart, which earns most of its revenue in Asia, Africa and the Middle East, had about 6.4 lakh credit ‌cards in ⁠India as of ⁠March, according to the latest regulatory data. It is selling a part of its India portfolio, where customers only hold credit cards and don't have a wider banking relationship. StanChart had been reviewing offers from Federal Bank and peer Kotak Mahindra Bank. For Standard Chartered, the deal aligns with its strategy to sharpen focus on wealth and affluent segments in India.

Geographically, the acquisition is a major strategic gain for Federal Bank, with approximately 75 per cent 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.