IndusInd Bank to acquire Deutsche Bank's credit card business

The portfolio size of the credit card business with nearly 2,50,000 cardholders is about Rs 225 crore, IndusInd Bank Managing Director and CEO Romesh Sobti told PTI.

"We hope to issue cards to new customers by the end of June," he said, without disclosing the amount the lender would pay to acquire Deutsche Bank's credit card business.

The existing cardholders would continue to retain Deutsche Bank's credit cards for certain period of time, after which they would be phased out, he said.

With this acquisition, IndusInd Bank will look at expanding its wide range of customer-centric financial products and becoming a full service bank, he said.

Under the agreement, IndusInd Bank will get access to close to 2,50,000 card customers and the entire operating platform of the cards franchise including talent and technology, he said.

The strategic intent behind this acquisition is to offer targeted credit card products for chosen client segments, he said.

"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," Sobti said.

Commenting on the development, Deutsche Bank India Head (Private and Business Clients) Prashant Joshi said, "Our agreement with IndusInd Bank is in line with our desire to build out our retail banking business in India around our core strengths of deposits, wealth management, and secured lending. Deutsche Bank has a rapidly expanding retail franchise in India with a high quality customer base."

As a precursor to its entry into the credit card business, IndusInd Bank hired Anil Ramachandran as the head of its cards business in November last year.

Prior to this, Ramachandran was with Deutsche Bank as head of the credit cards business for India.

Earlier, he had worked for Citibank, where he was also associated with the credit card function in various senior positions.