Kerala-based Federal Bank is acquiring Standard Chartered’s select portfolio of up to 450,000 retail credit cards in India for an undisclosed amount.

While the deal falls in line with Standard Chartered’s strategy to focus on wealth business in India, it allows Federal Bank to deepen its credit card presence in Tier-1 cities with an upscale customer base. 

The final portfolio to be acquired, however, will depend on the timing of the 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,” the Indian lender said in a statement.

Federal Bank has a base of 8 lakh non-co-branded credit cards and 13 lakh co-branded cards. The private lender’s non-co-branded credit cards receivables would increase by an anticipated ~90%, it said. 

For Federal Bank, the acquisition of up to 4.5 lakh cards will mark a strategic geographical spread. Around 75% of the acquired card base is concentrated in India’s top eight cities, leading to the 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 lender said.

The acquisition represents a strategic addition to Federal Bank’s retail credit franchise. “The portfolio we are acquiring is of good quality, highly seasoned active credit card users, and is concentrated in the markets that align with our strategy. This further accelerates the growth of our already fast-growing cards business," said Federal Bank managing director and CEO KVS Manian.

Standard Chartered, which earns most of its revenue in Asia, Africa and the Middle East, is selling a part of its India portfolio. It has about 640,000 credit cards in India as of March, according to the latest regulatory data.

⁠The proposed transaction does not require regulatory approvals and is expected to close by the end of 2026. 

"This decision is in line with our strategic shift towards building deeper, multi-product relationships with ‌our ⁠clients," Aditya Mandloi, Standard Chartered's head of wealth and retail banking in India and South Asia, said.

The bank has been selling its non-core businesses in India.

Last year, Standard Chartered sold its India personal loan business, valued at $488 million ⁠at the time, to Kotak Mahindra Bank.

India has 118 ⁠million outstanding credit cards, with HDFC Bank, SBI Card and ICICI Bank being among the notable players.