By Bappaditya Paul
Kolkata: On its fourth anniversary, Kolkata-headquartered Bandhan Bank has made an entry into the credit card segment, albeit riding on the shoulders of Standard Chartered Bank.
In an event in the city today 23 August, Bandhan launched co-branded credit card in partnership with Stan Chart.
This is the first-time that an upscale Stan Chart has partnered with any bank in India for co-branded credit card.
The credit card is open to the near 40-lakh account holding Bandhan customers and they will be able to apply for a card in any of the 1001 branches of the bank spread across India. However, the credit will be extended from the book of accounts of Stan Chart.
“Stan Chart has been a prime player in credit card segment and has the requisite expertise. Hence, we have tied-up with them for the backend support while we will face the customers,” Bandhan MD and CEO, Chandra Shekhar Ghosh, said at the launch.
He said that in February this year the Bandhan governing board took the decision to launch credit card and subsequently approached Stan Chart.
“It took the two of us only three months to finalise the partnership and here we are now with co-branded credit cards.”
Bandhan has around 1.74-crore customers, but Ghosh clarified that for now, the micro-borrowers are not eligible to apply for a credit card.
Zarin Daruwala, CEO of Stan Chart, who was present at the launch, said that her bank will provide Bandhan with a software that screens the customers on several criteria including account balance, transaction, bill payment and loan history, etc.
“Using this, Bandhan will shortlist an eligible customer. The credit call will be taken by us although the cards will be processed and dispensed through Bandhan branches,” she said.
Daruwala said that Stan Chart presently has around 1.2 million credit card customers in India and they are served through the bank’s network of 100 branches.
“We have been seeking an annual growth of 15-20 per cent in this segment and hope to augment this further through this partnership.”
To start with, Bandhan and Stan Chart are offering three variants of co-branded credit cards ~ One, Plus, and Xclusive ~ with the annual fee being Rs 299, Rs 699, and Rs 2,999, respectively.
The cards will extend an interest fee credit for 52 days.