Standard Chartered (STAN.L) is evaluating offers from Kotak Mahindra Bank (KTKM.NS) and Federal Bank (FED.NS) to acquire its portfolio of up to 600,000 credit-card-only customers in India. This potential divestment aligns with StanChart’s strategy to reduce its focus on single-product clients and improve overall profitability. Standard Chartered is a British multinational bank providing financial services. Kotak Mahindra Bank is an Indian financial services company, offering a wide range of banking and financial products.
Both Kotak and Federal have submitted final offers for the portfolio, which comprises customers who have no other banking relationship with StanChart and are considered non-core. The financial details of the proposals remain undisclosed, and neither the Indian lenders nor Standard Chartered have responded to requests for comment. According to sources familiar with the matter, StanChart is currently reviewing the offers, with a decision expected in due course. The potential sale does not signal a complete exit from the credit card business, as the bank plans to retain approximately 70,000 affluent Indian credit card customers with broader banking relationships.
Acquiring StanChart’s credit card portfolio presents an opportunity for Kotak and Federal to expand their credit card base and reduce customer acquisition costs in a competitive market. Kotak currently has 4.5 million issued credit cards in India, while Federal has 2 million, compared to StanChart’s 670,000. In January, StanChart launched an invite-only “Beyond Credit Card” program for priority clients, marking a strategic shift towards the wealth and affluent segment.
StanChart is among several foreign banks scaling back their retail operations in India due to competition from local firms. In 2023, Citigroup exited the market by divesting its India retail franchise to Axis Bank, while Deutsche Bank is exploring a sale of its retail and wealth management business in the country. StanChart’s 2025 annual report stated that India generated $1.6 billion in operating income, representing 7.8% of the bank’s total global income.
