Indian private sector lender RBL Bank and non-banking financial company Bajaj Finance have decided to cease the issuance of new co-branded credit cards, marking the end of an eight-year partnership.
This decision, reached through mutual agreement, reflects the evolving synergies between the two entities.
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RBL Bank said its credit card business strategy remains unaffected.
The existing RBL-Bajaj co-branded credit cards will continue to function normally.
Upon renewal, these cards will be reissued under the RBL Bank brand.
The bank has pledged ongoing support to its approximately 3.4 million co-brand credit card customers.
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By GlobalDataRBL Bank has broadened its credit card issuance capabilities over the past 18 months establishing direct channels and forging new co-brand partnerships.
The bank has strategically reduced its reliance on BFL-originated co-brand cards, with a significant drop in new card issuances from approximately 126,000 in September 2023 to about 37,000 in September 2024.
RBL Bank’s diversification efforts include forming alliances with non-banking financial companies (NBFCs) such as Mahindra & Mahindra Finance and TVS Finance, as well as with consumer brands such as IOC and IRCTC.
Furthermore, RBL Bank will continue to focus on expanding its credit card segment.
RBL Bank strategy head Jaideep Iyer was quoted by Business Standard as saying: “As a strategy, we want to have a diversified origination channel. When we were scaling up, we were acquiring about 200,000 to 250,000 cards per month, but we’ve reduced this to 100,000 per month due to our own priorities of doing more with customers than just a card.
“This, coupled with a challenging environment surrounding unsecured retail, meant incremental sourcing was reduced. With an overall base of more than 5 million cards, the strategic need for this partnership has diminished. Therefore, this is a logical outcome for both parties.”
