Is Standard Chartered Bank looking to pare its credit card business in India? 

Nearly 18 months since selling it’s personal loan book, Standard Chartered Bank, India, may be looking to pare its credit card business. A report by Reuters indicated that the lender is reviewing offers from Kotak Mahindra Bank and Federal Bank to acquire up to 6 lakh credit card customers. 

Standard Chartered Bank said it doesn’t comment on market speculation. Neither Kotak Bank, nor Federal Bank have issued any official comment on the report. 

It is learnt that Standard Chartered Bank has no plans to exit the credit cards business in India completely. But, the lender may be willing to let go off those credit card customers who don’t have other relationships with it, sources said. 

In January this year, Standard Chartered had announced a refreshed priority banking proposition in India, in line with its strategic pivot towards the wealth and affluent segment. 

Under that strategy the lender would shift from a product-led engagement to deeper, multi-product relationships with clients. 

“India continues to be a strategic growth market for our Wealth and Retail Banking business. Our enhanced Priority proposition, including the launch of our Beyond Credit Card, reflects our commitment to further entrench ourselves within the wealth and affluent segment, ” Aditya Mandloi, Head, Wealth and Retail Banking, India and South Asia, Standard Chartered, had said while announcing the new strategy then. 

The likely decision to let go off some of the customers who only have credit card relationship with the bank may be in the backdrop of that strategy. 

In October 2024, Standard Chartered Bank, India, had entered into an agreement to sell its personal loan portfolio to Kotak Bank. That transaction had comprised a total loan outstanding of around Rs 4,100 crore. 

Standard Chartered’s sharpening its focus on specific segments comes while a few other foreign lenders have also looked to scale back in India in the last few years. 

Citibank sold its consumer banking business in India to Axis Bank for around Rs 11,603 crore in 2023. German lender Deutsche Bank too has been in talks to sell its India retail assets.