A recent press report said that Bajaj Finance Limited, a non-banking financial company (NBFC), has launched a co-branded credit card with Standard Chartered Bank. The company has initially planned to focus on captive clients. It has planned to issue 150,000-200,000 cards within 12 months of starting operations.
Reports said that the company has planned to offer only premium segments cards, Platinum and World, powered by Master card, and the risk would be managed by the bank in the beginning. The company would announce its foray in the credit card business in a week.
Reports said that 40 per cent of the company’s customers in the consumer durables segment have credit cards so they have planned to tap the rich customers with a low-cost acquisition model. It also said that the credit cards to be launched are expected to be premium, and these would focus on rewarding the customer for daily purchases made through the card.
Reports added saying that Bajaj Finance has a loan book size of around Rs 9,000 crore, and it offers a variety of products including two-wheeler loans, personal loans, loans against property, small business loans, construction equipment loans and loan against securities. The card offers to covers the core categories that contribute to over 30-50 per cent of the average individual spend, including grocery, utility bill payments, retail fashion, superstores and departmental stores.