Federal Bank on Monday forayed into credit card segment through the launch of co-branded credit cards in partnership with SBI Cards, a leading credit card issuer.
In the first year, Federal Bank aims to issue as many as 1.5 lakh credit cards to its customers, Shyam Srinivasan, Managing Director & Chief Executive Officer, told a press conference here.
Initially, two variants—Platinum and Gold’ N More—will be issued under the Visa platform for a specified fee.
"Yes this is for the first time that Federal Bank is entering the credit card segment. This alliance with SBI Cards will help fill a striking gap that existed in our product portfolio", Srinivasan said.
Federal Bank had all along "shied away" and "resisted the temptation" of entering the credit card segment, he pointed out.
"The Federal Bank SBI Credit Card will help complete the bouquet of offerings we have for all of our clients’ retail needs. It meets the longstanding demand of our valued customers to hold a Federal Bank credit card", Srinivasan said.
Commenting on the launch, Vijay Jasuja, Chief Executive Officer, SBI Cards, expressed confidence that the new co-branded card will add value to the customers of Federal Bank.
"Through this collaboration, we hope to extend our bouquet of best in class services and rewarding offers to Federal Bank customers", Jasuja said.
While the Platinum card variant will come with a fee of ₹ 2,999, the fee in the case of Gold N’ More card is ₹ 499.
Jasuja said that the benefits to card members in terms of joining gift (exclusive gift voucher) and reward points for use will outweigh the expense incurred towards the fee for the Platinum card.
International airport lounge access and golf course access are the other benefits available under the Platinum variant.