Private sector lender RBL Bank will stop issuance of new co-branded credit cards in partnership with non-banking finance company (NBFC) Bajaj Finance, the bank’s management told businessline. The move does not materially 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.
New partnerships
“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.
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, and offers associated with their existing cards. Upon renewal, these Bajaj Finance Co-branded cards will be reissued as RBL Bank branded credit cards.
Expands capabilities
Over the last 18 months, RBL Bank has significantly expanded its credit card issuance capabilities through both direct channels and new co-brand partnerships.
The bank has, however, minimised the dependence on the origination of co-brand 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.