Standard Chartered’s reported retail exit plan draws interest from local banks

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Standard Chartered is considering selling its consumer banking and credit card operations in Bangladesh, with City Bank and BRAC Bank among the institutions interested in acquiring the business.

The two local banks have already held separate discussions with Standard Chartered. Senior officials from the bank’s headquarters and regional office have also met with the Bangladesh Bank governor to discuss the matter. However, no formal agreement has been reached so far.

Sources said Standard Chartered first indicated its intention to wind down its retail banking operations in Bangladesh in July. Several local banks subsequently held talks with the multinational lender about acquiring parts of the business, with City Bank and BRAC Bank currently appearing to be the main interested parties.

Standard Chartered reportedly holds around Tk 160 billion in retail deposits against approximately Tk 100 billion in loans. Its consumer banking services include savings and current accounts, fixed-term and foreign-currency deposits, personal, auto and home loans, as well as debit and credit cards. The bank also operates Saadiq, its Shariah-based Islamic banking service.

City Bank currently has about Tk 450 billion in individual deposits and Tk 120 billion in consumer loans, while BRAC Bank has around Tk 530 billion in individual deposits and approximately Tk 140 billion in consumer loans.

Officials from both banks said no acquisition has been finalised. Any potential transaction would require valuation, regulatory approvals and several other procedures.

Standard Chartered Bangladesh said it does not comment on market rumours or speculation, while reaffirming that the bank remains committed to Bangladesh and has maintained a presence in the country for more than 120 years.