India’s largest state-run bank State Bank of India and the country’s one of the top retailers Future Group have launched a co-branded credit card.
The credit card issued by SBI jointly with Future Group’s fashion and lifestyle departmental store “Central” offer benefits to the premium lifestyle and fashion consumers.
“Since demonetisation card transactions have gone up to 85% from 61% in Central. We are looking forward to much more,” Future Group CEO Kishore Biyani said.
“We are targeting a revenue of Rs 3,500 crore for 2017-18, and are adding 16 more stores next year,” he added.
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Earlier, SBI Card introduced a co-branded card with Future Group’s affordable fashion store under “Big Bazaar”. The card, named fbb SBI StyleUp Card, targeted at the value-conscious consumer looking for affordable fashion.
“SBI Card has been witnessing a strong year on year growth in the last few years and is today the second largest credit card issuer in India,” State Bank of India (SBI) chairman Arundhati Bhattacharya said, adding, “… Both SBI and Central are two very strong customer-centric brands and we are sure this new partnership will drive growth for SBI Card in the high growth premium lifestyle and apparel segment.”
The Central SBI SELECT and SELECT+ Cards offer an accelerated reward points structure, where cardholders will earn 20 reward points for every Rs 100 spent at Central stores.
Dining and entertainment spend will earn the cardholder 10 points per Rs 100 spent, while all other categories will earn them 2 reward points per Rs 100. It also offers up to Rs 5,000 to cardholders.
Card issuances in India have risen sharply since the government unexpectedly demonetised high-value currency notes in order to counter black money. SBI Card – the second-largest card issuer – added 1.15 lakh credit card users, taking its total card issuance tally to 47.5 lakh.
“Demonetisation has given the card business a leg-up as the increase in transactions has been exponential and we believe if we continue to put more and more transactions on the electronic platform it will bode quite well for the card business,” said Bhattacharya. “Since November 9 more and more transactions are happening on the digital platform,” she added.
According to RBI data, HDFC Bank had issued 8.3 million credit cards, while SBI Card had issued 4.1 million credit cards until October. ICICI Bank – the third-largest player in the credit card market – had issued 4.06 million credit cards and Axis Bank issued 2.89 million credit cards.