RBL Bank is planning to stop issuance of cobranded credit cards in partnership with Bajaj Finance. The move does not significantly change the bank’s plans for credit card business growth, including new issuances and spends. RBL Bank will continue to service the existing portfolio of approximately 3.4 million co-brand credit cards issued under this partnership, while ensuring seamless customer support.
The bank’s credit card advances stood at ₹17,538 crore in Q2FY25, up 17 per cent year-on-year.
“We are looking at growing the cards book. This does not materially change our card acquisition strategy, we have put in place new co-brand partnerships,” said Jaideep Iyer, Head – Strategy, RBL Bank. reported BusinessLine.
The bank has diverse range of co-branded credit card partnerships including with NBFCs such as Mahindra & Mahindra Finance, TVS Finance, as well as consumer brands like IOC and IRCTC. “From cards, our excitement is more towards how we can cross sell our products to card customers, and we are already beginning to do that,” Iyer said.
Customers will enjoy the same benefits, rewards associated with their existing cards. Upon renewal, these Bajaj Finance Co-branded cards will be reissued as RBL Bank branded credit cards.
Expanding footprint
In the past one and a half years, RBL Bank has significantly expanded its credit card issuance capabilities via direct channels as well as with new cobrand partnerships.
The bank has, however, lowered its dependence on the origination of cobrand cards with Bajaj Finance over the last one year from 1.26 lakh card in the month of September 2023 to 37,000 cards issued in September 2024.
RBL Bank had 51.74 lakh outstanding credit cards as of October. Under its partnership with Bajaj Finance which kicked off in 2016, the bank used to source new customers.
The partnership was a key engine with the bank sourcing as high as 75% of its credit cards issued through this partnership in 2020.
