Federal Bank to come back with co-branded credit cards in 3-4 months after getting regulatory approvals: Shyam Srinivasan

Federal Bank is working on details to share with the RBI and get necessary clearances, added MD and CEO Shyam Srinivasan

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Federal Bank's Managing Director and Chief Executive Officer Shyam Srinivasan said the lender will come back with co-branded credit cards in next three to four months once it gets appropriate approvals from the Reserve Bank of India (RBI).

“We will come back to it in next three-four months once we get the appropriate regulatory approvals,” Srinivasan said during the concall after Federal Bank announced its results on May 2.

He further added that the bank is working on details to share with the RBI and get necessary clearances.

On March 13, Federal Bank said it has stopped issuance of new co-branded credit cards and the Bank is in the process of rectifying the areas that are deficient and will seek regulatory clearance prior to resumption of new issuance.

This was done after the bank received letter from the RBI dated March 12, 2024.

“The Bank continues to offer credit cards to new and existing customers in the non-co-branded segment and will also continue to service the existing customers who currently hold co-branded credit cards issued by the Bank,” lender said in an exchange filing on March 13.

Earlier today, the lender had reported nearly flat net profit at Rs 906 crore for the quarter ended March 31, according to the exchange filing issued on May 2.

Sequentially, the net profit fell 10 percent from Rs 1,007 crore in Q3FY24, the filing showed. The company also declared a dividend of Rs 1.2 per equity share for FY24.

The bank's net interest income at Rs 2,195.11 core was its highest-ever, recording a jump of 15 percent, while the asset quality improved marginally, the company statement said. The gross non-performing assets improved 23 bps YoY to 2.13 percent, while the net non-performing assets 9 bps to 0.6 percent.