Federal Bank and Standard Chartered Bank, India, have agreed to sign an agreement for the former to acquire a select Credit Card portfolio comprising 4.5 lakh credit cards from the latter, India.
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., Federal Bank said in a statement.
Federal Bank’s existing base of 8 lakh non-co-branded cards and 13 lakh co-branded cards. Federal Bank’s non-co-branded credit cards receivables would increase by an anticipated ~90 per cent . The final portfolio, including the number of cards acquired, will depend on the timing of the final transfer and customer consent.
The transaction, upon completion, will expand Federal Bank’s credit card base and significantly deepen its presence in Tier-1 cities with a high-quality, seasoned customer base, per the tatement.
“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,” the Bank said.
Strategic addition
KVS Manian, MD & CEO of Federal Bank said, “This acquisition represents a compelling and strategic addition to our 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.”
Virat Sunil Diwanji, National Head of Consumer Banking, said Federal Bank is committed to ensuring a seamless and uninterrupted transition, while giving customers access to its full suite of products and services as we strive to build deeper and more enduring relationships.
Published on April 30, 2026