SBI to Increase Co-Branding Credit Business

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.

Easy Credit Card Bill Payment

SBI Card has announced "Pay Cash" payment option for its customers through Easy Bill payment outlets in India. This will enable SBI Card customers to pay their credit card bills in cash payment at any of the 3,500 merchant outlets of Easy Bill in India.

This is the first time that the Bank is relying on a private network and that too for cash collection. It will be interesting to see the performance of the same.