A recent press report said that private sector lender Federal Bank has planned to make its entry into the credit card business of India in order to expand its reach and presence in the Indian banking domain. The bank has planned only to market the cards while the backend mechanism of the card would be outsourced.
Mr. Abraham Chacko, executive director of the bank, said that the bank has sensed a need to launch a credit card. He said that the process was at the preliminary stage, and that the bank is internally discussing the proposal. He also said that the bank was connecting some external parties to gain knowledge about outsourcing the product in terms of pricing, customers and other business details. The present debit card customer base of the bank stands at around Rs. 16 lakh and 55% of the total business of the bank comprises of the retail segment.
Federal Bank Limited is a major Indian commercial bank in the private sector, headquartered at Aluva, Kerala. The name Federal Bank Limited was officially announced in the year 1947 with its headquarters nestled on the banks on the river Periyar. Since then there has been no looking back and the bank has become one of the strongest and most stable banks in the country. The bank offers home loan, personal loan, mortgage loan, car loans, Aashray Scheme, Equity Subscription, Prathyasha Loan, Ashwas Gold Loan etc.