British lender Standard Chartered is selling its select credit cards portfolio to homegrown Federal Bank. The portfolio comprises up to 4.5 lakh credit cards and the deal is expected to close in the current 2026 calendar year.

The final portfolio, including the number of cards acquired, will depend on the timing of the final transfer and customer consent. 

The deal values the portfolio at 1.5 to 1.6 times implied equity as estimated by Federal Bank and the final consideration will be linked to actual balances at the time of transfer.

Why is Standard Chartered selling a part of its credit cards portfolio?

Aditya Mandloi, MD and head wealth and retail banking, India and South Asia, Standard Chartered Bank, says, the move is in line with its strategic shift towards building a deeper, strategic shift with its clients.

"Credit cards continue to be a core part of our offering, complemented by our ongoing investments in strengthening our wealth platform and enhancing our proposition for our affluent clients, including the recent launch of our Metal Beyond Credit Card," he said.

He stressed that India remained a key market for Standard Chartered, where it continued to invest and strengthen its presence.

Sources had told Business Today earlier that Standard Chartered may be willing to let go off those credit card customers who don't have other relationships with it.

In January this year, Standard Chartered had announced a refreshed priority banking proposition in India, in line with its strategic pivot towards the wealth and affluent segment. 

In October 2024, Standard Chartered Bank, India had entered into an agreement to sell its personal loan portfolio to Kotak Bank. That transaction had comprised a total loan outstanding of around Rs 4,100 crore. 

How does this deal benefit Federal Bank

Federal Bank already has a base of 8 lakh non-co-branded cards and 13 lakh co-branded cards. This deal should augment that, with Federal Bank estimating that non-co-branded credit card receivables to rise by around 90 per cent. 

About 75 per cent of the acquired card base is concentrated in India’s top eight cities, leading to Federal Bank’s presence more than doubling in these locations, it said. 

Therefore KVS Manian, the MD and CEO of Federal Bank, sees this as a "compelling and strategic addition" to its 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 Manian. 

Published on: Apr 30, 2026 9:34 PM IST