A recent press report said that Mr. Diwakar Gupta, Managing Director, and CFO, State Bank of India, has cautioned banks from issuing free credit cards. He said that the issuing of credit cards should be made against a fee so that only those who value it will get it.
He asked banks not to push free cards for the sake of increasing numbers because it is a high cost industry in terms of service.
He spoke at a co-branded international credit-card named SBI-Bank of Maharashtra Card promoted jointly by SBI Cards and Payments Services Private Ltd and Bank of Maharashtra (BoM). The card is available in two variants, Platinum and Gold, with each offering distinct benefits.
Mr. A.S. Bhattacharya, CMD, BoM, said that the partnership is an example of synergies derived by two partners coming together. He said that the tie-up will make a perfect platform to create a new benchmark in the credit-card industry.
He also said that robust payment network was necessary to fulfill the need to pay seamlessly across geographies and time zones. He said that SBI has now offered 1.6 products per customer, which should be three or more.
SBI has cancelled its teaser loan (home loan) but it has hiked its interest rates due to the continuous hike in the base rates by the Reserve Bank of India. The hike has effected new and some of the existing borrowers of the bank.