Mumbai: Private sector lender IndusInd Bank Ltd on Monday said it had agreed to buy the local credit card business of Germany based Deutsche Bank AG for an undisclosed sum.
“Under the agreement, IndusInd Bank will get access to close to 200,000 card customers and the entire operating platform of the cards franchise including talent and technology,” IndusInd said in a press release.
IndusInd, which is founded by the Hinduja Group does not have a credit card business and it is expected that the bank will launch it this financial year with the help of this acquisition.
“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,” said Romesh Sobti, managing director and chief executive officer, IndusInd Bank.
In separate press release, Prashant Joshi, head, private & business clients, Deutsche Bank India said the sale will help the German lender concentrate its retail banking business around deposits, wealth management, and secured lending.
For IndusInd this acquisition gives “an head start in building the cards business,” Sumant Kathpalia, head consumer banking, at IndusInd Bank said.
Deutsche Bank will work with IndusInd to ensure a smooth transition for clients, said Shameek Bhargava, head of credit cards Asia Pacific at Deutsche.
IndusInd Bank ended 1.49% higher at Rs275.50 per share on the Bombay Stock Exchange (BSE), beating the benchmark Sensex’s 1.04% fall on Monday.