Private sector lender, IndusInd Bank has decided to buy the credit card operations of the Indian division of Deutsche Bank.
Talks about Deutsche Bank selling off its credit card business have been in the air since quite some time. Amongst various contenders for the same, the bank had finally shortlisted two lenders namely, Axis Bank and IndusInd Bank.
The credit card business of the lender has 1,50,000 active cards and and outstanding amount worth Rs 2-2.5 billion rupees.
"IndusInd is close to striking the deal with Deutsche Bank and could offer a small premium to the amount outstanding on the current credit card base, which is in the range of 225-250 crore (2.25-2.5 billion rupees)," said a source having knowledge about the issue.
"The deal is in its last leg and IndusInd seems to have an edge over Axis Bank as it would be able to absorb the 217 people employed in the credit card division of Deutsche Bank. It would be a lift and drop deal with IndusInd as it is in the process of launching its credit card business," said another banker.