Launched on July 1 and open till July 31, 1999 the `Free Card Offer' scheme is specifically targeted at consumers who already hold either a Citibank, American Express, Standard Chartered or ANZ Grindlays credit card. To sweeten the offer, the HSBC card comes virtually free: the bank has waived off its annual fee of Rs 800 for the first year, to any new card member who signs on.

The scheme will cover the main metros and target the country's top 500 corporates, with a special focus on MNCs.

Besides getting existing card holders to sample the HSBC card-and thereby, trigger conversions-the scheme will also give the bank strategic insight into the competition's database of credit-card holders. Two of the key conditions to participate in the scheme are that a consumer provide aphotocopy of his/her existing credit card and submit card statements for the last two months.

The annual fee charged by the bank during the first year is Rs 800, while in the subsequent years, it is Rs 500. All the other benefitsthat a regular HSBC card holder is entitled to -- insurance, credit facilities, accidental insurance, credit shield, purchase protection and zero lost-card liability -- are being extended to the users of this scheme as well.

The scheme is not applicable to those consumers who do not already have a credit card. The delivery of the card is being promised in three-to-four weeks period. HSBC charges 2.75 per cent interest on outstandings, while Citibank charges 2.95 per cent interest.

The targets to be achieved through this scheme are not known, as despite repeated attempts, HSBC sources in Delhi and Mumbai refused to comment on the scheme. However, one of the DSAs in Delhi says: ``The purpose of this scheme is clearly to increase the consumer base of the HSBC credit cards.'' HSBChas four DSAs, covering the Capital region. HSBC has 15 DSAs across the country.

This scheme comes close on the heels of the `I Cheer For India' World Cup promo launched in early February '99 and extended till June 30. The bank had claimed that it had exceeded its projected double digit growth in credit card issuance at the end of the promo.

The current consumer base for HSBC's cards is over two lakh card holders. Currently, HSBC stands fifth in terms of issuing cards, while Citibank is the leader.HSBC plans to touch the five lakh card holders mark by 2001. The bank has a market share of around 10-12 per cent in the two million credit card market.