BOBCARD is recalibrating its credit card portfolio towards relatively premium and lower-risk customers as stress builds in smaller-ticket unsecured lending, said managing director and CEO Ravindra Rai, signalling a clear shift in strategy amid tighter regulatory oversight and a more cautious industry environment.
The Bank of Baroda subsidiary has begun moving away from aggressive expansion in vulnerable customer cohorts, particularly first-time cardholders with limits in the Rs 10,000–Rs 25,000 range, where delinquencies have risen across the industry. “This segment typically bears the brunt of stress during periods of job uncertainty, with credit cards often being the first product to see defaults,” Rai added.
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Refining Risk and Underwriting
As part of the recalibration, BOBCARD has refined its underwriting framework, slowed down “card-on-card” issuance, and introduced sharper data filters to identify over-leveraged customers. While underwriting is not yet fully automated, Rai said decision-making increasingly incorporates data intelligence and early AI-led inputs, including telco-based signals, to improve credit quality and support sustainable growth. “We are being cautious, but we cannot afford to be left behind on technology,” he said.
The strategy is already reflected in the company’s balance sheet. BOBCARD’s gross non-performing assets stand at 3.6%, compared to 3.4% a quarter back, which Rai said is close to peaking and could begin easing from the next quarter as tighter sourcing norms take effect. Credit costs, he added, are also expected to stabilise as portfolio seasoning improves, indicating a focus on maintaining asset quality while pursuing growth. Credit cost has surged to 7.8% compared to 7.2% a year ago.
Digital Core
The company has ramped up co-branding tie-ups with players such as Uni, Scapia and Etihad, and recently launched a 5% cashback proprietary card aimed at deal-seeking customers. Rai said spending behaviour in India has structurally shifted post-pandemic, particularly among consumers in the 35–40 age bracket, creating room for measured growth despite near-term volatility.
Technology remains central to this push, with expenditure doubling. BOBCARD has invested over the past 18 months in building a smoother, app-led digital journey, upgrading underwriting systems and strengthening its customer service infrastructure, including a new state-of-the-art contact centre that is beginning to use agentic AI tools.
On regulation, Rai said the Reserve Bank of India’s emphasis on governance, data protection and customer service is appropriate, even if operationally demanding. “The regulator’s priority is the customer, and that aligns with long-term sustainability,” he said.
With a target of issuing 7 million cards over the next 2 years, BOBCARD’s roadmap rests on “cautious aggression”—using technology to scale without losing sight of asset quality, governance, and customer trust.