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Federal Bank CEO K V S Manian says the bank remains keen on building its wealth franchise but is not actively pursuing any specific acquisition at present.
Federal Bank has opted out of a larger inorganic opportunity, Deutsche Bank’s retail and wealth business in India, estimated at around Rs 4,500 crore.
Federal Bank on Thursday said its board has approved entering into a deed of assignment (DOA) with Standard Chartered Bank (India) to acquire a select portfolio of retail credit cards, even as it confirmed stepping away from talks to buy Deutsche Bank’s India retail and wealth business.
“…we hereby inform you that the Board of Directors of Federal Bank, at its meeting held on April 30, 2026, has approved that the bank proceed to enter into a deed of assignment (DOA) with Standard Chartered Bank, India (SCB India), whereby the bank would acquire a select portfolio of retail credit cards from SCB India. The bank shall provide an update on the execution of the DOA in due course,” the lender said in an exchange filing.
Credit Card Bet Gains Momentum
The proposed acquisition aligns with Standard Chartered’s strategy to move away from standalone credit cards in India and focus on bundled, multi-product banking relationships with lifestyle and payment offerings.
As of January, the UK-based lender had around 700,000 credit cards in India, including 550,000 standalone cards. The remaining 150,000 are linked to broader banking relationships, which the bank plans to deepen.
“We will focus on multiproduct relationships with individual clients, anchored in wealth solutions, international banking, and seamless, consistent services. What we will not do is push standalone, single-product offerings. Our strategy is to build deep, meaningful relationships with clients and SMEs,” Aditya Mandloi, head of wealth & retail banking, India and South Asia, at Standard Chartered, had said.
Standard Chartered had also exited its personal loan business in India last year through a sale to Kotak Mahindra Bank.
For Federal Bank, the move strengthens a segment it has been actively scaling. The lender had 2.24 million credit cards in FY26, while Standard Chartered’s base stood at 638,169.
“…credit cards have shown strong growth not just this quarter but over the last few quarters, and we continue to remain focussed on this segment for growth. We had identified certain products as medium-yielding segments, and we want to grow them faster than low-yielding segments,” managing director and chief executive officer K V S Manian said after the earnings call on Wednesday.
The bank reported its highest-ever quarterly profit of Rs 1,259 crore for Q4FY26, up 22.23 per cent year-on-year, supported by growth in net interest income and other income, even as provisions increased.
Walks Away from Deutsche Bank Deal
In contrast to its targeted push in credit cards, Federal Bank has opted out of a larger inorganic opportunity — Deutsche Bank’s retail and wealth business in India — estimated at around Rs 4,500 crore. The decision potentially leaves Kotak Mahindra Bank as the sole contender.
In a post-earnings call on April 29, CEO K V S Manian said the bank remains keen on building its wealth franchise but is not actively pursuing any specific acquisition at present.
“We remain interested in building wealth as a proposition for our customers. It not only expands the wallet share for us, but it also allows us to acquire and have a proposition for higher-value and affluent customers,” he said. “We remain open-minded on inorganic opportunities but there is nothing on the table about any specific opportunity that we have.”
Deutsche Bank’s India operations held about Rs 25,000 crore in wealth management assets and Rs 25,038 crore in retail banking assets as of March 2025. This is the German lender’s second attempt to exit these segments after a failed effort in 2017.
Foreign Banks Recalibrate, Federal Builds Wealth Platform
The developments come amid a broader trend of foreign banks recalibrating their India strategies due to intense competition from domestic lenders, rising compliance costs, and tighter regulatory requirements that limit scale beyond metro markets.
Federal Bank, meanwhile, is strengthening its wealth management play. It recently launched its ‘FedNext’ platform and plans to expand investment offerings through GIFT City and other metros. The bank had entered the segment seven years ago in partnership with Equiris Capital and currently holds an 8.69 per cent stake in the investment bank.
April 30, 2026, 1:51 PM IST
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