Federal Bank Moves to Acquire Standard Chartered’s India Credit Card Portfolio
Federal Bank has announced that its board has approved a proposal to acquire a portion of Standard Chartered Bank’s domestic retail credit card portfolio in India. The proposed deal marks a strategic step for the Kerala-based lender to expand its footprint in the retail credit segment.
The development follows earlier reports that Standard Chartered had been evaluating bids from Kotak Mahindra Bank and Federal Bank for a segment of its credit card business. The portfolio under consideration is believed to include up to 600,000 India-based customers who hold standalone credit card accounts, making it a significant opportunity for expansion in the competitive cards market.
Standard Chartered has been restructuring its India operations by divesting non-core assets to enhance profitability. In line with this strategy, the bank had previously sold its India personal loan business to Kotak Mahindra Bank in a deal valued at $488 million. Federal Bank, however, has not disclosed financial details of the current transaction, stating that the deal remains subject to the execution of a formal agreement.
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