Kotak, Federal Bank in Race to Buy Standard Chartered's India Credit Card Business

Standard Chartered is weighing offers from two Indian lenders, Kotak Mahindra Bank and Federal Bank, to take over its portfolio of around 600,000 Indian customers, who hold only a credit card with the bank and have no other relationship with it.

The potential sale is part of StanChart's broader strategy to move away from single-product clients and sharpen its focus on more profitable, high-value banking relationships, according to a Reuters report. The London-based lender has been steadily trimming non-core parts of its India business to improve overall profitability. Last year, it sold its India personal loan business, valued at $488 million at the time, to Kotak Mahindra Bank.

Kotak Mahindra Bank and Federal Bank have submitted their final offers for the credit card portfolios. StanChart is currently reviewing both bids, though a decision is expected to take some time.

Notably, the potential sale does not mean StanChart is exiting the credit card business entirely, the bank plans to retain around 70,000 customers who are considered affluent and have broader banking relationships with the lender.

Last year, StanChart's interim Chief Financial Officer Pete Burrill said the bank was focused on offloading portfolios tied to single products, particularly those outside the affluent customer category, a strategy that this latest move firmly aligns with, the report added.

Even as it trims its credit card base, StanChart is doubling down on premium customers. In January, the bank launched an invite-only "Beyond Credit Card" for priority clients, which it described as part of its "strategic pivot to the wealth and affluent segment."

StanChart is not alone in pulling back from India's retail banking space. Citigroup exited the market in 2023 by selling its India retail franchise to Axis Bank, while Deutsche Bank is currently exploring a sale of its retail and wealth management business in the country.

Despite scaling back its retail ambitions, India remains a significant market for StanChart. Its 2025 annual report showed the country generated operating income of $1.6 billion, accounting for 7.8% of the bank's total global income.

For the two Indian banks, acquiring StanChart's credit card portfolio would offer a relatively cost-effective way to grow their customer base in a fiercely competitive market.

Kotak currently has 4.5 million credit cards in circulation in India, while Federal Bank has 2 million, compared to StanChart's 670,000. Adding a ready-made portfolio of customers would allow either bank to scale up quickly while keeping customer acquisition costs low.

Despite the development, Kotak Mahindra Bank's shares showed little reaction, closing just 0.29% higher at ₹375.40 on Wednesday, hovering just above the stock's 52-week low of ₹1,363.45, reached on March 13. Separately, the bank had reduced the face value of its shares from ₹5 to ₹1, with January 14, 2026 as the record date.