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Federal Bank has announced the acquisition of a portion of Standard Chartered Bank’s credit card portfolio in India to strengthen its presence in major urban markets. The portfolio includes up to 4.5 lakh credit cards, which will be added to Federal Bank’s existing base of non-co-branded and co-branded cards. The deal is expected to significantly boost the lender’s credit card receivables and expand its footprint across top cities. Standard Chartered, meanwhile, is streamlining its focus towards affluent, multi-product customer relationships while continuing its presence in the credit card segment.
Federal Bank, earlier this week, announced that it is set to acquire part of Standard Chartered Bank’s credit card portfolio in India as part of its strategy to deepen its presence in large urban centres. Advertisement
Standard Chartered Bank is divesting a portfolio made up of single-product customer relationships and related transactions. This move is aligned with its plan to strengthen its focus on the affluent customer segment, as stated in an official communication.
The portfolio being transferred includes up to 4.5 lakh credit cards. Federal Bank currently operates with around 8 lakh non-co-branded credit cards and nearly 13 lakh co-branded cards. With this acquisition, the bank’s non-co-branded credit card receivables are expected to rise by approximately 90 per cent.
The transaction does not require regulatory approval and is expected to be completed within the calendar year 2026. However, the final number of cards will depend on the timing of the transfer and customer consent. The financial details of the deal have not been disclosed yet and will be finalised closer to the transfer stage.
Federal Bank entered the credit card segment in 2021 and has been steadily expanding its presence since then. According to Reserve Bank of India data, Standard Chartered Bank had 6.38 lakh outstanding credit cards as of March 2026.
The Federal Bank management had previously highlighted certain asset quality concerns in its co-branded credit card partnerships with fintech companies. At the same time, it expressed confidence in the performance of its non-co-branded portfolio.
The acquisition is expected to provide what the bank described as a significant strategic benefit, as nearly 75 per cent of the acquired card base is concentrated in India’s top eight cities. This is likely to more than double Federal Bank’s presence in these key urban markets.
Federal Bank’s managing director and chief executive KVS Manian stated that the acquired portfolio consists of well-performing and active credit card users. He added that the transaction aligns with the bank’s strategy and is expected to further support the growth of its credit card business.
On the other hand, Standard Chartered Bank’s head of wealth and retail banking for India and South Asia, Aditya Mandloi, noted that the bank is shifting its focus towards building deeper, multi-product relationships with its clients. He added that credit cards will remain an important offering for its affluent customer base and mentioned that the bank has recently introduced a new product in this space.
Mandloi also reiterated that India continues to be an important market for Standard Chartered, where the bank is further investing to strengthen its presence while maintaining seamless service for its clients.
Meanwhile, Federal Bank’s shares were trading higher by 0.81 per cent at INR 287 per share on the BSE at 1512 hrs, compared to a 0.86 per cent decline in the benchmark index.
Source Reuters
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