Bajaj Finance Card: RBL Bank (RBL) has terminated its long-standing credit card distribution partnership with Bajaj Finance. Following this, RBL Bank might need a quarter to resume the rate of new product sales. This assessment has been provided by a high-ranking employee of the organization.
The private sector bank’s business leader, Bikram Yadav, mentioned that it has lessened its reliance on non-bank lenders over the past 18 months. However, around 30 percent of the more than 100,000 cards associated with the partnership are co-branded cards.
Yadav mentioned that this progress occurs at a moment when the general atmosphere regarding credit cards is somewhat careful because of worries about unsecured loans. He mentioned that it will require roughly a quarter for the bank to resume the usual rate of new card sales.
Conclusion of the partnership will have no impact
“Starting in April, we will return to the same ratio,” Yadav mentioned, stating that the conclusion of the partnership will have no impact on income generation.
Ending the agreement will not affect the quality of the credit card portfolio
He stated that ending the agreement will not affect the quality of the credit card portfolio. He mentioned that even with the co-branded credit card offer, the choice of the asset was determined by the bank. Jaideep Iyer, the strategy chief, stated that the emphasis moving forward will be on selling additional products to the bank’s 5.4 million credit card clients rather than its current offerings. The credit card portfolio includes 34 lakh clients with co-branded products offered through Bajaj Finance, he mentioned. “We’ve increased our distribution capabilities, so ending the partnership with Bajaj Finance is not significant,” Iyer stated.