"SBI is planning to launch a co-branded card soon. We have entered into a co-branding relationship with seven State Bank subsidiaries including State Bank of Hyderabad, State Bank of Patiala and State Bank of Jaipur and Bikaner," said SBI Cards & Payment Services Ltd chief executive officer Vishal Pandit. The card will hit the market by this year-end, he said, but declined to reveal details of the launch.

A co-branded card involves a partnership between the card-issuing bank and a commercial partner and offers various benefits to cardholders. Co-branded cards are supposed to have higher uptake and lower attrition due to enhanced cardholder loyalty. Globally, more than 20 per cent of the cards issued are co-branded, according to a market estimate.

With the launch of its co-branded card, SBI will join its rivals inthe credit-card market estimated at Rs 5,000 crore of cardspend, growing at a rate of 20-30 per cent. Elaborating on their marketing strategy, Pandit said SBI enjoys a wide network of branches, has a mass reach all over the country, and is focussing on first-time middle-class card users living beyond the metros.