The portfolio comprises up to around 4.5 lakh credit cards, with a large concentration—about 75%—based in India’s top eight cities. The acquisition is expected to significantly deepen Federal Bank’s penetration in Tier-1 markets and expand its access to a high-quality, seasoned customer base.
Post completion, the transaction is expected to materially increase Federal Bank’s non-co-branded credit card receivables by nearly 90%. The bank currently has around 8 lakh non-co-branded credit cards and 13 lakh co-branded cards. The final portfolio size and consideration will depend on the timing of transfer and customer consent.
Federal Bank said the acquisition is aligned with its retail relationship strategy and will help it strengthen engagement with urban consumers in the non-co-branded credit card segment. The bank added that the deal will further accelerate growth in its credit card business.
The portfolio has been valued at around 1.5–1.6 times implied equity, as estimated by Federal Bank, with the final consideration linked to actual balances at the time of transfer.
Management said the acquisition supports its strategy of building deeper retail relationships and expanding its footprint in high-value urban markets. It added that the bank will focus on integrating the customers smoothly and providing access to its broader suite of banking products.
For Standard Chartered Bank, India, the transaction aligns with its strategic shift towards focusing on wealth and affluent banking segments. The bank said it continues to strengthen its multi-product relationships approach and will work to ensure a smooth transition for affected customers.
The deal does not require regulatory approvals and is expected to be completed within calendar year 2026. Both banks said further details will be disclosed as the transaction progresses.
First Published:Â Apr 30, 2026 2:58 PM IST
