Private sector lender Federal Bank has agreed to acquire a select credit card portfolio from Standard Chartered Bank in India, in a move aimed at strengthening its retail credit franchise and expanding its presence in metro markets.
The proposed transaction, announced today, involves the transfer of up to around 4.5 lakh credit cards from Standard Chartered’s India portfolio. This compares with Federal Bank’s existing base of about 8 lakh non-co-branded cards and 13 lakh co-branded cards, and is expected to significantly scale up its cards business.
The acquisition is expected to nearly double Federal Bank’s non-co-branded credit card receivables, with an estimated 90% increase, according to the bank’s internal estimates. The portfolio is being valued at around 1.5- 1.6 times implied equity, with final consideration linked to balances at the time of transfer.
1 April 2026
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The transaction does not require regulatory approvals and is expected to be completed within calendar year 2026, subject to customer consent and final portfolio transfer timelines, said the lender in a statement.
The deal was advised by Arpwood Capital as financial advisor to Federal Bank, with legal counsel from Khaitan & Co, while KPMG acted as due diligence advisor. Trilegal advised Standard Chartered Bank, India on the transaction..
“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 Federal Bank’s managing director and CEO KVS Manian.
The lender has been scaling its retail lending franchise in recent years, with credit cards emerging as a key growth vertical alongside personal loans and SME lending.
