Mumbai, Sept. 30: ICICI Bank Ltd, a leading player in retail finance, has identified co-branded credit cards as a focus area.
While around 50 per cent of new business in this division is expected to come from co-branded credit cards, the bank is planning to tap the travel, telecom, retailing, airlines, petro and health industries for tie-ups with leading players.
ICICI Bank, with a credit card base of 1.6 million, has joined hands with Big Bazaar, promoted by Pantaloon, to launch a co-branded credit card.
This is the bank’s third such offering after a tie-up with Hindustan Petroleum Corporation Ltd (HPCL) and a retail player in Andhra Pradesh. The venture with HPCL has bought about 0.5 million customers into its fold. The bank now issues around 1 lakh credit and 1.5 lakh debit cards every month.
Executive director of ICICI Bank Chanda Kochhar said while the bank had the fastest growth in the credit card segment, co-branded credit cards would act as a win-win situation for the customer, the bank and its partner.
On a purchase of Rs 1,550 and above, the ICICI Bank- Big Bazaar co-branded credit card will enable the customer to pay back the amount in three equal monthly installments without incurring any finance charges. Big Bazaar will also offer other benefits to cardholders, including a separate payment counter and tele-ordering facilities.
Pantaloon chief Kishore Biyani said, the tie-up is an effort to create a loyalty programme for its customers. The company, which gets around a million customers at its outlets in a month, has plans to sell financial products in its stores.
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