The Hindu Business Line : Syndicate to drop StanChart — Plans tie-up with Visa for own cards

"The idea is to launch credit card and even debit card on our own. Towards this, we are tying up with Visa International," the Syndicate Bank Chairman and Managing Director, Mr Michael Bastian, told Business Line.

Initially, the bank plans to come out with debit card and blend it later with credit card. This exercise would be completed before the end of current fiscal year.

"We are aiming for three lakh cards during the current fiscal. We are currently at an advanced stage of entering into credit card business on our own," Mr Bastian said.

He said, "We will terminate the alliance we have with Standard Chartered Bank for credit cards by giving a three-months notice. We expect to launch the card on our own in the next six months."

According to him, the current volume of business being recorded by the bank in the credit card segment in alliance with StanChart was, however, insignificant. Before StanChart, the bank was among some seven banks to have an agreement with Canara Bank for credit cards business.

"That did not work. As the acceptability was low, we pulled out from Canbank tie-up. We now feel that it is good to have our own credit card," Mr Bastian said.

The bank is also planning to become the first public sector bank in the country to launch a composite card — debit, credit and ATM card rolled into one.

Aimed at strengthening its delivery channels for the customer convenience, Syndicate Bank has decided to expand the ATMs network across the country. "On our own, we are planning for about 100 ATMs by March 2004. We are also tying up with four other nationalised banks to use their ATMs network for our customers.

These are Indian Bank, Bank of India, Punjab National Bank and United Bank of India.

All the five of us put together, there would a network of over 800 ATMs across the country. As the volumes would be significantly high through this tie-up, the transaction cost for accessing the ATMs of other banks would be kept at minimal levels."

With a view to significantly enhance its non-interest income levels, Syndicate Bank proposes to take up the marketing of insurance products through its vast branch network.

"We are at an advanced stage of discussions with some insurance companies for marketing their products. We have already short-listed a couple of them ," Mr Michael Bastian added.

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