Federal Bank Skips Deutsche Bank Deal, Picks Up StanChart's Credit Card Portfolio Instead

Federal Bank has decided against pursuing the acquisition of Deutsche Bank's retail and wealth management business in India, an opportunity estimated at around ₹4,500 crore, effectively leaving Kotak Mahindra Bank as the sole contender for the deal.

The bank's CEO K V S Manian, speaking on a post-earnings call on April 29, said the lender remains interested in building its wealth franchise but is not actively chasing any specific acquisition at present.

"We remain interested in building wealth as a proposition for our customers. It not only expands the wallet share for us, but it also allows us to acquire and have a proposition for higher-value and affluent customers," Manian said. "We remain open-minded on inorganic opportunities but there is nothing on the table about any specific opportunity that we have."

What Was at Stake

Deutsche Bank's India operations held around ₹25,000 crore in wealth management assets and ₹25,038 crore in retail banking assets as of March 2025. This marks the German lender's second attempt to exit these segments in India, after a failed effort in 2017.

Reports had first emerged in January that both Kotak Mahindra Bank and Federal Bank were evaluating a potential acquisition of these operations.

With Federal Bank now out of the running, Kotak Mahindra Bank appears to be the only serious buyer left.

A Different Deal Gets Done

In a contrasting move announced the same week, Federal Bank's board on April 30 approved an agreement to acquire a select portfolio of Standard Chartered Bank's retail credit cards in India, as disclosed in an exchange filing.

"The Board of Directors of Federal Bank, at its meeting held on April 30, 2026, has approved that the bank proceed to enter into a deed of assignment with Standard Chartered Bank, India, whereby the bank would acquire a select portfolio of retail credit cards from SCB India," the filing stated. The deal value was not disclosed.

The sale fits Standard Chartered's broader strategic shift in India. The UK-headquartered bank, which held around 700,000 credit cards in India as of January, of which 550,000 were standalone, had previously said it would no longer push standalone credit cards in the country. Instead, it intends to focus on bundled, multi-product banking relationships with lifestyle and payment benefits, retaining the 150,000 cards linked to such relationships.

Notably, Reuters had reported in March that both Kotak Mahindra Bank and Federal Bank were among those reviewing offers for this standalone credit card portfolio, which covers up to 600,000 customers who hold only credit card accounts with Standard Chartered in India.