StanChart reviews offers for India credit card portfolio

Standard Chartered PLC is currently reviewing offers from Kotak Mahindra Bank and Federal Bank to acquire its credit-card-only customer portfolio in India. The potential divestment involves approximately 600,000 customers who do not hold other accounts with the bank, as the United Kingdom-based lender seeks to streamline its operations by focusing on multi-product, affluent clients. The move aligns with a broader strategy to offload non-core assets and improve profitability within the region. Last year, the bank sold its personal loan business in the country to Kotak Mahindra Bank in a deal valued at 488 million dollars. While the financial details of the current bids remain undisclosed, the transaction would allow the acquiring banks to expand their market share and reduce the costs associated with customer acquisition in a highly competitive landscape. Standard Chartered interim Chief Financial Officer Pete Burrill previously stated: > the bank was focused on offloading portfolios tied to single products without broader client relationships or those outside the affluent category. Currently, Kotak Mahindra Bank manages 4.5 million credit cards, while Federal Bank oversees 2 million. In comparison, the selling institution holds roughly 670,000 cards in the local market. Following the proposed sale, the lender intends to retain about 70,000 high-net-worth clients who maintain broader wealth management or priority banking relationships. This strategic pivot follows a trend of international financial institutions scaling back retail operations in the face of intense local competition. In 2023, Citigroup Inc. completed the sale of its local retail franchise to Axis Bank. Similarly, Deutsche Bank AG has reportedly been exploring options for the sale of its retail and wealth management segments in the territory. Despite these adjustments, the region remains a significant contributor to global earnings, accounting for 7.8 percent of the bank's total operating income in its most recent annual report.