In a move to expand its retail footprint in tier-1 cities, Federal Bank will acquire a majority of Standard Chartered Bank India’s credit card portfolio. The proposed transaction is expected to close in calendar year 2026.

Federal Bank will acquire around 450,000 cards—about 70% of Standard Chartered India’s total base of 640,000 credit cards. The lender currently has around 800,000 non-co-branded cards and 1.3 million co-branded cards.

Upon completion, the transaction is expected to increase Federal Bank’s non-co-branded credit card receivables by nearly 90%. The final portfolio size will depend on the timing of the transfer and receipt of customer consents, the bank said in a statement.

ALSO READ

Doubling Metro Footprint

The portfolio has been valued at around 1.5–1.6 times implied equity, with the final deal value linked to actual balances at the time of transfer. About 75 per cent of the acquired card base is concentrated in India’s top eight cities, more than doubling Federal Bank’s presence in these markets. The bank said this would materially enhance its footprint in Tier-1 cities and strengthen access to financially active urban consumers, particularly in the non-co-branded segment.

KVS Manian, Managing Director and CEO of Federal Bank, said the acquisition is a strategic addition to the bank’s retail credit franchise and would accelerate growth in its cards business. Federal Bank’s credit card book rose 23% year-on-year to ₹4,368 crore as of March 31.

ALSO READ

Strategic Realignment

For Standard Chartered, the deal aligns with its strategy to sharpen focus on wealth and affluent segments in India. Aditya Mandloi, Managing Director and Head – Wealth & Retail Banking, Standard Chartered Bank, India & South Asia, said the transaction supports the bank’s shift towards deeper, multi-product relationships, while moving away from predominantly single-product relationships represented in this portfolio. He added that credit cards remain a core offering, alongside continued investments in its wealth platform and affluent proposition, including the recent launch of its Metal Beyond credit card.

Arpwood Capital is acting as exclusive financial advisor to Federal Bank, with Khaitan & Co as legal counsel and KPMG as due diligence advisor. Trilegal is advising Standard Chartered Bank, India, on the transaction.