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The Hinduja Group-promoted IndusInd Bank has agreed to acquire Deutsche Bank’s loss-making credit card business in the country.
The IndusInd Bank Managing Director and Chief Executive, Mr Romesh Sobti, said: “We are happy to have come to an agreement with Deutsche Bank on acquiring this business. This will accelerate the launch of credit cards which we consider a critical link in our suite of consumer banking products.”
Both the banks did not disclose the financial details of the deal.
Under the agreement, IndusInd Bank will get access to close to 2,00,000 card customers of the German bank and the entire operating platform of the cards franchise, including talent and technology.
Commenting on the deal, the Deutsche Bank Asia Pacific Head for Credit Cards, Mr Shameek Bhargava, said: “We have built a quality premium credit card business in India. IndusInd’s widespread footprint makes them an ideal choice to take this business forward. We are committed to working with IndusInd to ensure a smooth transition for clients and other stakeholders.”
The IndusInd Bank Consumer Banking Head, Mr Sumant Kathpalia, said: “The strategic intent behind this acquisition is to offer targeted credit card products for chosen client segments. Cards are an important element in our segmented offering. Deutsche Bank has a stable cards portfolio and the acquisition gives us a head start in building the cards business.”
The deal marks the entry of IndusInd into the credit card area which it hopes will significantly enhance its bouquet of offerings and thereby expand its wide range of customer-centric products.
The Deutsche Bank India Private & Business Clients Head, Mr Prashant Joshi, said: “Our agreement with IndusInd is in line with our desire to build our retail banking business here around our core strengths of deposits, wealth management, and secured lending.”
He added: “We have a rapidly expanding retail franchise here with a high-quality customer base. We are committed to executing our successful branch building strategy in this market where we have 15 branches and will increase this further again this year.”
IndusInd Bank commenced its operations in 1994 and caters to the needs of both individual consumers and corporates through 192 branches. The bank also has two representative offices, one each in London and Dubai.
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