SBI Card which is a subsidiary of the State Bank of India and operating as an NBFC is exploring the option of tying up with regional banks to expand its national footprint. SBI Card has forged alliance with United Bank of India and Catholic Syrian Bank, as step in this direction.
SBI Card has alliance with the Indian Railways, Tatas, Hero Honda etc for Co-branded credit cards. The Credit Card industry in India is growing anually at the rate of 30%, while SBI has been growing at the rate of 45%. SBI is the second largest issuer of credit cards in India with 3.5 million customers.
SBI Card, CEO Asthana is of the opinion that once Credit Bureaus are powerful in India, the APR on your credit card will go down so will delinquent accounts. For consumers with good payment track record, it will be easier to get finance at cheaper than market rates.