Federal Bank agreed on 30 April to acquire a select portfolio of retail credit cards from Standard Chartered Bank's Indian operations, covering up to about 450,000 cards held by customers without a wider banking relationship.
Why The Federal Bank Ltd is buying Standard Chartered Bank India credit card portfolio
Federal Bank said the portfolio was of good quality, made up of highly seasoned active users concentrated in markets that fit its strategy, and would accelerate its fast-growing cards business. It estimated the deal would increase its non-co-branded card receivables by about 90%.
Deal terms and financing
The portfolio was valued at about 1.5 to 1.6 times implied equity, with the final consideration linked to outstanding balances at the time of transfer. Under the deed of assignment signed on 4 May, Standard Chartered will assign the receivables and Federal Bank will issue replacement cards to migrating customers under an agreed plan.
Regulatory approvals and timing
Federal Bank said the transaction did not require regulatory approvals and was expected to complete within calendar 2026, subject to customer consent and transfer timelines.
Market context
Before the deal Federal Bank had about 800,000 non-co-branded and 1.3m co-branded credit cards, according to Outlook Business. KPMG acted as due diligence adviser to Federal Bank.
