Karur Vysya Bank on Friday launched a co-branded credit card with SBI Cards. Announcing this at a press conference, Mr K. Venkataraman, Managing Director and CEO of Karur Vysya Bank, said the alignment with SBI Cards is to avoid capital expenditure such as overheads on setting up a separate division and investing in people.
“Whereas, joining hands with SBI Cards will give us a ready and immediate access to the portfolio.”
Two variants
The KVB-SBI co-branded cards will be available in two variants — Gold and Platinum — and will have both magnetic strip and ‘a chip' which is said to provide a high level of security to cardholders. These cards will initially be issued for the bank's existing customers.
Besides common credit card services, the bank offers cash points for every Rs 100 spent on cards (which can later be converted into cash), Rs 3,000 worth apparel voucher on joining, complimentary access to airport lounges and fuel surcharge waiver across all petrol pumps.
Speaking on the issuing procedure, he said though the issuer will be SBI Cards, it will be upon KVB's recommendation. The bank, according to him, has over four million customers, and “more than 50 per cent of them will certainly meet the required profile”.
On the bank's performance, Mr Venkataraman said the total business was over Rs 52,000 crore with deposits in excess of Rs 30,000 crore and advances Rs 22,000 crore as on September 30, 2011.
The net profit of the bank up to Q3 of the current fiscal was at Rs 353 crore. The bank's NPA ratio is “one of the lowest in the country” at 0.29 per cent with the coverage ratio at 80.03 per cent.