Standard Chartered is assessing offers from Kotak Mahindra Bank and Federal Bank to acquire up to 600,000 of its Indian customers who only use its credit cards, reported Reuters.
The review is part of the bank’s effort to reduce its exposure to single-product clients.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
The lender has been divesting segments of its Indian business deemed non-essential in a bid to improve profitability.
Last year, Standard Chartered sold its India personal loan portfolio, then valued at $488m to Kotak Mahindra Bank.
Both Kotak and Federal have submitted their final bids for Standard Chartered’s credit card book in India which consists solely of customers with no other products at the bank, the sources said.
They declined to be identified due to the private nature of the talks. Specific financial terms were not disclosed.
Requests for comment by Kotak, Federal, and Standard Chartered were not answered.
“StanChart is currently reviewing both of these offers and it is expected to take some time,” one source said, noting that this move does not mean the bank is withdrawing entirely from the credit card sector.
The source added that this decision aligns with a focus on removing “non-core accounts.”
Reporting on Standard Chartered’s intent to sell this portfolio has previously emerged, yet this is the first time Kotak and Federal have been identified as bidders.
Acquiring these credit card-only accounts would allow either Indian lender to increase market share and possibly lower costs associated with acquiring new customers, highlighted Reuters.
Presently, Kotak has issued 4.5 million credit cards in India, while Federal Bank’s total stands at 2 million. In comparison, Standard Chartered’s Indian credit card base numbers about 670,000.
Should the deal move ahead, Standard Chartered plans to retain around 70,000 clients described as affluent and holding additional relationships with the bank, one of the sources said.
In a call last year, interim chief financial officer Pete Burrill said that the bank aimed to sell portfolios linked to single products or those outside its preferred client group.
While Standard Chartered reduces focus on standalone credit card users in India, it recently introduced an invite-only product aimed at higher-value customers as part of what it called a “strategic pivot to the wealth and affluent segment.”
According to Standard Chartered’s 2025 annual report, income from its India business reached $1.6bn last year, accounting for 7.8% of its global earnings.
Other international lenders have also restructured their retail presence in India amid competition from domestic banks.
Citigroup exited its retail business in India in 2023 through a sale to Axis Bank, while Deutsche Bank is reportedly considering a sale of its own retail and wealth management operations.
