Kotak Mahindra sees 30% rise in credit cards sales in 2 yrs
Kotak Mahindra Bank, that entered the credit card business in 2007 as part of its retail expansion, expects the portfolio to contribute around 25% to 30% to the overall income in the next two years, a top executive of the private lender said.
February 23, 2011 / 11:14 IST
Kotak Mahindra Bank, that entered the credit card business in 2007 as part of its retail expansion, expects the portfolio to contribute around 25% to 30% to the overall income in the next two years, a top executive of the private lender said.
At present, the credit card business contributes about 15% of the bank''s total income and operates from 12 major cities, where it has a presence. "We are quite bullish about the retail business, especially the credit card portfolio. We expect the division to contribute around 25% to 30% to the total earnings in the next 2-3 years," Kotak Mahindra Group Head (Retail Liabilities & Branch Banking) KVS Manian told PTI here.The bank expects to achieve the growth by extending credit card service to a few more cities as well as by co- branding the cards with players from sectors such as retail, entertainment, aviation and restaurant chains, Manian said.The lender provides credit card services in 12 major cities and plans to add 8 more in the current fiscal, he said.On initiatives that would further drive growth in this segment, the Mumbai-headquartered bank''s Business Head (Credit Cards) Subrat Pani said the lender has tied-up with leading multiplex chain PVR Ltd to start co-branded cards."This is the first such card of its kind in India. The card would help customers earn up to two free movie tickets on spends of Rs 7,500 on the card every month, thus creating more value for PVR and Kotak Mahindra Bank. This also helps us to retain existing customers and acquire new ones," Pani said.The bank had, in 2009, tied-up with Bharti Retail''s Easyday stores. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
