YES Bank on Wednesday launched co-branded credit cards with American Express for top-end customers segments. The private sector lender will offer these cards through branches in seven cities, the bank said in a statement. The cards are available in variants of American Express Platinum Reserve Credit Card, American Express Platinum Travel Credit Card and American Express Gold Card.
“We will target customers who have some prior relationship with us rather than going to the open market to sell these cards. This completes the product suite that we offer to our customers,” said Pralay Mondal, senior group president, retail and business banking, YES Bank.
The bank is not aiming at being highly competitive in the individual consumer loan segment, Mondal said. YES Bank will rather aim at retaining their current customers and look at selling these loans to them, he added.
“We will offer our customers with relationship based pricing, quick turnaround and a complete suit of products, so that they wouldn't need to step out of the bank. Later when we scale up our business, we would look at competing with other players,” Mondal said.
However, YES Bank is planning to be as aggressive as any player, when it comes to financing the commercial vehicle, property and other business banking segments. These loans attract the priority sector lending tag and therefore are important for the bank, he said.
As of today, consumer loans constitute on 1-2% of the total loan book. The entire retail portfolio, which includes retail small and medium enterprises (SMEs) along with individual loans, contributes about 10-15% of total book.
Though there are no targets which have been decided upon internally for lending, however, the bank will look at increasing its penetration in the current customer base.
On the liabilities side, the bank does not plan to retire its offering of 7% interest on savings accounts to customers with balance above R1 lakh and 6% for those with balance below R1 lakh, since YES Bank has seen a significant deposits from customers, Mondal said.