Dena Bank Credit Card from SBI

SBI Cards in association with Dena Bank has launched SBI Dena Bank Credit Card for Dena Bank customers. The credit cards will be managed by SBI Cars and Payment Services.

SBI Dena Bank card is offered in two different categories - Gold and International. Offers attractive rewards program. Some of the customers will be eligible for Flexipay - easy installment plan where customers can choose the one best suited to their financial needs and NIL surcharge on fuel and lubricant purchases.

SBI Cards also said that its card issuance has come down to third of its peak of monthly issuance of 100,000 cards. Deliquencies in the Credit Card industry is a whopping 15%. Outstandings on SBI Cards is around Rs 2,000 crore. SBI is making all efforts to reach to customers with good payment track record but are facing problems in the current economic slowdown and offering them good packaged payment deals.

Do let us know your experience about SBI Credit Card settlements as this will also help other readers.

iPhone on EMI - Bharti Airtel

Bharti Airtel in association with VISA and SBI Credit Cards is offering iPhone 3G on an EMI deal. If you are a SBI card holder you can BUY the 16GB version iPhone for Rs 1,654 per month in 24 installments. You end up paying Rs 39,696 for a device costing Rs 36,000. SBI is charging 9.5% rate of interest [reducing balance] assuming if you promptly pay the installments.

However it is not very clear how will SBI handle the case if you are already carrying forward balance on your credit card. We recommend not to get into the trap as it is not worth it - Rs 40,000 for a phone ? However, if you are still tempted to BUY, then ask every detailed question before you BUY and get the same in writing because SBI is well known to change their verbal version of rules and regulations.

Dena Bank Credit Card JV likely

There is good news for Dena Bank customers on the credit card front. Dena Bank is in the finalization stages of launching a credit card with SBI. Dena Bank has been into the Credit Card business for over a decade now. However, the division doesn't have enough customer base yet. It is likely that the bank focused on its High Networth Individual customers for the issuance of credit cards.

Mr. Gairola, CMD of Dena Bank said,

We have not been very aggressive in this business. Our CC business has just 10,000 customers and we are confident of a tie-up with SBI Card to broaden our card base.

The deal being worked out is to take the process of card business as well as credit risk and a formula of profit sharing is being worked out.

Most Trusted Brand in Credit Card Category - Reader's Digest

According to Reader's Digest annual brand survey for 2008, SBI Credit Card has won the Gold award for the most trusted credit card brand in India. SBI credit card is a joint venture of SBI and GE Money. SBI Card has over 3.2 million customers at the end of FY2008.

Balance Transfer Problem

SBI one of the largest issuer of credit cards in India hasv ery poor customer service and twists case according to its convenience. One of the readers of our blog has his story to tell here,

In the 3rd week of Jan I requested for a balance transfer of Rs.8400/- for my HDFC credit card. As per your services (also confirmed by your executive during applying for BT) that if I am unable to receive the BT cheque/draft then SBI will deposit it to the relevant bank. I was surprised to get a call from HDFC of non-payment of amount and subsequently I was charged late fee plus interest (attached the statement snapshot for reference).When I called SBI customer care services, I was puzzled when the lady executive said that they don’t have any information regarding my BT cheque and no information is reflecting on the system also.

The lady then told me that IT WAS SBI FAULT AND AS PER THE RULES ALL THE CHARGES WILL BE REVERTED BACK TO ME and also the BT IS CANCELLED. BUT, suddenly I came to know that HDFC have received the cheque very-very late and they cleared it on 12th Feb'08.

Mental harassment caused by SBIAfter taking too much pain in contacting SBI telephonic IVR – CC (problem mention in point 1) I said that THIS IS MY LAST CALL AND TILL MY CONCERN IS NOT CLEARED I AM HOLDING ALL MY PAYMENTS TO SBI.

After couple of days I got call from SBI recovery cell for payment of minimum amount (that include the BT for HDFC). As it was my responsibility to pay the minimum amount and feeling that the excess amount will be reverted back to me once the issue gets cleared I agreed to pay the amount. I don’t know how SBI didn't got my cheque so they kept following me and the mental harassment was too much to handle so I gave once more cheque for the minimum amount. And finally both the cheques got cleared.

Kindly beware when you ask for Balance Transfer because our banking system si in such a mess w.r.t credit cards you never know what has happened. Best thing is continue to make atleast minimum payments so that you are not a defaulter.